It's a move designed to affect market psychology mainly. Multiple central banks have concluded that QE at best contributes marginally to the reduction of long term interest rates. People want something to be done, and BoE delivers.
It also shifts the discussion from "what's causing the fall of the pound and the rise of long term rates" to "what will be the effect of this new round of QE?"
To get a better picture, take a broader view. This move comes as all of the world's currencies are falling against the dollar. Why?
It also shifts the discussion from "what's causing the fall of the pound and the rise of long term rates" to "what will be the effect of this new round of QE?"
To get a better picture, take a broader view. This move comes as all of the world's currencies are falling against the dollar. Why?
This article might be helpful:
https://www.lynalden.com/global-dollar-short-squeeze/