United Kingdom GBP

United Kingdom BOE Quantitative Easing

Impact:
Low

Latest Release:

Date:
Actual:
£375B
Forecast: £375B
Previous/Revision:
£375B
Period:
What Does It Measure?
The Bank of England’s (BOE) Quantitative Easing (QE) measures the effectiveness of monetary policy tools in stimulating the UK economy by increasing the money supply. It primarily focuses on fostering economic growth, influencing inflation rates, and improving employment levels by purchasing financial assets, especially government bonds.
Frequency
The BOE typically announces updates on its QE program during monetary policy meetings, which occur about every six weeks, providing final decisions rather than preliminary estimates.
Why Do Traders Care?
Traders pay close attention to QE announcements as they signal the BOE's stance on economic conditions and influence market sentiment. Expectations of increased QE can lead to a depreciation of the British Pound and bullish movements in equity markets, while any indication of tapering or reducing QE may strengthen the currency and negatively affect stocks.
What Is It Derived From?
The BOE's QE decisions are derived from various economic indicators, including inflation rates, GDP growth, and employment data, collected through extensive economic surveys. The central bank employs a set of criteria to determine the volume and duration of asset purchases based on its assessment of the economy's performance and outlook.
Description
The BOE’s QE program is a significant component of its monetary policy, aimed at providing economic stimulus during periods of low growth or recession. The program is often seen as a response to insufficient inflation and stagnant economic conditions, with the central bank assessing the need for asset purchases to boost liquidity and financial stability.
Additional Notes
QE is often viewed as a leading indicator of future economic health, as its implementation can precede recovery signals in the economy. Additionally, it is correlated with broader global monetary policy trends, as many central banks have adopted similar strategies in response to economic downturns, influencing international markets.
Bullish or Bearish for Currency and Stocks
Higher than expected QE: Bearish for GBP, Bullish for Stocks. A dovish tone: Signaling ongoing economic support, is usually bad for the GBP but good for Stocks due to cheaper borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Sep 10, 2015
£375B
 £375B
£375B
Jun 04, 2015
£375B
£375B
May 11, 2015
£375B
 £375B
£375B