Sterling rebounds after Bank of England keeps QE unchanged

Sterling has jumped against the dollar, reversing this morning's losses, after the Bank of England's Monetary Policy Committee (MPC) voted to keep its quantitative easing programme unchanged at £375bn.

Traders sold sterling this morning on expectations the bank would restart the printing press, driving the pound below $1.50 against the dollar to a new multi-year low of $1.4967. It was thought that, following the close decision last month on further QE - when the MPC was split 6-3 - there might by a fresh injection of stimulus. However, the MPC instead voted to keep QE unchanged at £375bn and rates at 0.5%. The announcement gave sterling a lift, reversing earlier falls, moving up to $1.5068 - a gain of 0.33% on the day - by 12.10pm. Some analysts had anticipated the MPC would v...