IMF's Georgieva: BoE policy should remain accommodative via scaling up bond purchases

The Bank of England's monetary policy should remain accommodative, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday, as reported by Reuters. "This can be done via scaling up bond purchases," Georgieva added.

Additional takeaways

"We are seeing a second COVID wave take hold in Europe."

"IMF staff forecast UK GDP to fall 10.4% in 2020, grow 5.7% in 2021."

"Continued UK policy support essential to address pandemic and invigorate recovery."

"Important for the UK to keep special job and company support programmes in place until pandemic subsides."

"We support an additional fiscal push, centred on public investment and enhancing UK's social safety net."

"Tools like negative rates can be brought in after further understanding is developed on when they would be most useful in the UK."

"Fiscal consolidation should only happen once the private sector has durably picked up steam."

"Essential for the UK to stabilise then reduce public debt ratios."

"Strongly encouraging the UK and the EU to make every effort to reach Brexit deal."

"The UK faces downside risks related to a prolonged covid-19 impact and a no-deal Brexit."

Market reaction

The GBP/USD pair remains depressed after these comments and was last seen losing 0.4% on the day at 1.2930.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD: Fizzles upside momentum below 0.7400 but bears await clear signals

AUD/USD eases after refreshing the three-month top the previous day, downside have recently been confined though. Chatters surrounding US-China relations, virus woes probe risk-on but absence of the US traders, light calendar elsewhere, limits the moves.


EURUSD stabilises above 1.1900 awaiting further drivers

EUR/USD was at the whim of US dollar flows on Thursday, but ultimately ended the day flat at just above 1.1800. ECB rhetoric, as well as the minutes of the November meeting, serve as a reminder of the stimulus dilemma faced by the ECB in December.


Gold: Consolidation at critical weekly lows, bears looking for a discount

The price of gold has been on the back foot this week, breaking below the psychological $1,850s area, plummeting to a fresh weekly low of $1,800.40.

Gold news

WTI regains $45.00 even as choppy session limits the moves

WTI fades pullback moves from the highest in nine months. The energy benchmark eased from the multi-day high the previous day as global optimism, mainly fuelled through the coronavirus (COVID-19) vaccine hopes, fizzled. Also challenging the oil bulls was the US holiday due to Thanksgiving Day.

Oil News

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info