BOE Raised the Asset Purchase Facility to £375B, Official Bank Rate Left at 0.50% - 5.7.2012

The Bank of England Monetary Policy Committee at its Statement today announced an increase of its Asset Purchase Facility (APF) by 50 billion pounds to 375 billion pounds as it was expected. The BOE uses the APF as a quantitative easing tool to boost money supply and improve liquidity in the credit markets. The MPC expanded its QE as the UK Inflation has been reducing the last months while the debt crisis in Europe was worsening, more stimulus will support growth for the UK economy. Finally the BOE decided to hold its Official Bank Rate at 0.50 per cent. The British pound traded up to 1.5600 after the release of the MPC Statement versus the greenback, the FX pair was lastly seen at 1.5587.