BoE Plays Waiting Game

Yesterday, the BoE maintained status quo at its monetary policy meeting and refrained from providing further QE. The central bank seems to have adopted a wait-and-watch approach ahead of the Greek elections on 17 June. Across the Atlantic, the Federal Reserve Chairman yesterday poured cold water on hopes of QE3, resulting in a flight from high yield assets. The situation in Europe looks grim, with Fitch lowering its credit rating on Spain by three notches and downbeat German trade data adding to the gloom. With little on the economic calendar globally, risk appetite is likely to remain subdued in today’s trading session.

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