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United Kingdom GBP

United Kingdom BoE Quantitative Easing

Info

History

Chart

Impact:

High

Source: Bank of England

Latest Release:

Date:

Actual:

£875B

Forecast: £875B

Previous/Revision:

£875B

Period:

What Does It Measure?

The Bank of England's (BoE) Quantitative Easing (QE) measures the central bank's strategy to increase money supply and stimulate economic activity by purchasing government securities and other financial assets. This event primarily focuses on financial liquidity, inflation, and economic growth, with key indicators such as the volume of assets purchased and the impact on interest rates.

Frequency

The BoE's QE measures are released as often as necessary, but typically during monetary policy meetings, which occur about every six weeks, and they may include preliminary announcements followed by detailed accounts in the subsequent meeting minutes.

Why Do Traders Care?

Traders pay close attention to QE announcements as they directly influence monetary policy, manage inflation expectations, and impact asset prices across currencies, stocks, and bonds. A commitment to QE or an increase in asset purchases typically signals a dovish stance, resulting in potential depreciation of the currency and bullish trends in equity markets.

What Is It Derived From?

The QE framework is derived from the BoE's assessment of the economic outlook and financial stability, with underlying calculations based on macroeconomic models and inflation forecasts. The decision also involves evaluating market conditions and the level of private sector investment, gathered through economic surveys and consultations.

Description

Preliminary reports from the BoE regarding QE reflect early estimates of asset purchases and are subject to revisions in subsequent releases, with the final data providing a more accurate representation of monetary policy actions. While these measures can be evaluated on a month-over-month (MoM) basis due to ongoing purchases, the BoE usually emphasizes results in the context of broader economic assessments rather than solely on short-term fluctuations.

Additional Notes

QE serves as a leading economic indicator, often correlating with enhanced economic output and reducing unemployment; however, it can also reflect deeper economic concerns when utilized extensively. The implications of QE are felt not only regionally within the UK but also globally, as it can influence capital flows and monetary policy considerations in other nations.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bearish for GBP, Bullish for Stocks. Dovish tone: Signaling lower interest rates or 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	Actual	Forecast	Previous	Surprise
Dec 16, 2021	£875B	£875B	£875B
Nov 04, 2021	£875B	£875B	£875B
Sep 23, 2021	£875B	£875B	£875B
Aug 05, 2021	£875B	£875B	£875B
Jun 24, 2021	£875B	£875B	£875B
May 06, 2021	£875B	£875B	£875B
Mar 18, 2021	£875B	£875B	£875B
Feb 04, 2021	£875B	£875B	£875B
Dec 17, 2020	£875B	£875B	£875B
Nov 05, 2020	£875B	£825B	£745B	£50B
Sep 17, 2020	£745B	£745B	£745B
Aug 06, 2020	£745B	£745B	£745B
Jun 18, 2020	£745B	£745B	£645B
May 07, 2020	£645B	£625B	£645B	£20B
Mar 26, 2020	£645B	£645B	£645B
Jan 30, 2020	£435B	£435B	£435B
Dec 19, 2019	£435B	£435B	£435B
Nov 07, 2019	£435B	£435B	£435B
Sep 19, 2019	£435B	£435B	£435B
Aug 01, 2019	£435B	£435B	£435B
Jun 20, 2019	£435B	£435B	£435B
May 02, 2019	£435B	£435B	£435B
Mar 21, 2019	£435B	£435B	£435B
Feb 07, 2019	£435B	£435B	£435B
Dec 20, 2018	£435B	£435B	£435B
Nov 01, 2018	£435B	£435B	£435B
Sep 13, 2018	£435B	£435B	£435B
Aug 02, 2018	£435B	£435B	£435B
Jun 21, 2018	£435B	£435B	£435B
May 10, 2018	£435B	£435B	£435B
Mar 22, 2018	£435B	£435B	£435B
Feb 08, 2018	£435B	£435B	£435B
Dec 14, 2017	£435B	£435B	£435B
Nov 02, 2017	£435B	£435B	£435B
Sep 14, 2017	£435B	£435B	£435B
Aug 03, 2017	£435B	£435B	£435B
Jun 15, 2017	£435B	£435B	£435B
May 11, 2017	£435B	£435B	£435B
Mar 16, 2017	£435B	£435B	£435B
Feb 02, 2017	£435B	£435B	£435B
Dec 15, 2016	£435B	£435B	£435B
Nov 03, 2016	£435B	£435B	£435B
Sep 15, 2016	£435B	£435B	£435B
Aug 04, 2016	£435B	£375B	£375B	£60B
Jul 14, 2016	£375B	£375B	£375B
Jun 16, 2016	£375B	£375B	£375B
May 12, 2016	£375B	£375B	£375B
Apr 14, 2016	£375B	£375B	£375B
Mar 17, 2016	£375B	£375B	£375B
Feb 04, 2016	£375B	£375B	£375B
Jan 14, 2016	£375B	£375B	£375B
Dec 10, 2015	£375B	£375B	£375B
Nov 05, 2015	£375B	£375B	£375B
Oct 08, 2015	£375B		£375B
Jul 09, 2015	£375B	£375B	£375B