This decision will increase money supply in the Economy and it will decrease the value of GBP. So, I will go short on GBPUSD.
Bank of England leaves QE, interest rates on hold
The Bank of England kept its powder dry on Thursday, voting as expected not to buy more government bonds despite the economy teetering on the verge of another contraction. After a two-day meeting, the BoE's nine-member Monetary Policy Committee said its main interest rate would stay at 0.5 percent and that it would not extend its gilt purchases beyond the 375 billion pounds' worth ($600 billion) bought so far. None of the 64 economists polled by Reuters had expected a change in interest rates or in the BoE's total target for quantitative easing. Worries about Britain's stubborn inflation are likely to have dissuaded ... (full story)