BOE policy makers, Dale and Weale, were terminated its campaign of higher interest rates this month, when the EU crisis and signs of a global economic slowdown have increased the risks of inflation negatively. The Monetary Policy Committee voted unanimously to keep the reference rate at a record minimum of 0.5%, according to the minutes of the meeting on 3-4 August. Posen maintained his vote to expand the program of purchases of bonds in 50 billion pounds. The committee also said that new asset purchases, which would increase the current program 200 billion pounds, "could be ensured if the downside risks materialize."
The central bank also noted that "overall, the news over the months have strengthened the weak tone of the indicators of growth in global activity in recent months."
The other hand, the Gold continues to trade near its highs, and this morning it does around 1780.00 per ounce, highlighting the fact that investors continue to seek safe havens. While there is some degree of speculation about the progress of the precious metal, there is no doubt the fear helped push gold to rise significantly. Last Thursday, gold reached its record high in trading around 1812.00 per ounce, while the stock market plummeted. Other commodities were also able to gain ground during the day yesterday, including oil. Operators who intend to participate in the short term must remain vigilant against any sudden event. The outlook for the market remains volatile and could not rule out the possible occurrence of rapid movements.
