According to headline in the FT. No other details cited

The EURUSD has moved higher on the news.

http://www.bankofengland.co.uk/publications/news/2012/008.htm" rel="nofollow" target="_blank

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.  The Committee also voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves, by £50 billion to a total of £325 billion.

In the United Kingdom, the underlying pace of recovery slowed during 2011, with activity falling slightly during the final quarter. Some recent business surveys have painted a more positive picture and asset prices have risen. But the pace of expansion in the United Kingdom’s main export markets has also slowed and concerns remain about the indebtedness and competitiveness of some euro-area countries. A gradual strengthening of output growth later this year should be supported by a gentle recovery in household real incomes as inflation falls, together with the continued stimulus from monetary policy. But the drag from tight credit conditions and the fiscal consolidation together present a headwind. The correspondingly weak outlook for near-term output growth means that a significant margin of economic slack is likely to persist.

The estimate is for an increase of 50B GBP in  Asset Purchase Facility to a target of 325B.  There are some estimates for 75B increase.  The main reason for the increase is CPI inflation is expected to decline in coming months as large increases on a MoM basis roll off.  In February, March and April a total of 2.0% exit the calculation.

Adds that Spain expects a worse contraction in Q1 2012 than in Q4 2011.

The CPI rose markedly in January, even above some lofty expectations during the shortened month in China for the New Year celebration. The market has not had a strong reaction to this inflationary release as Greek leaders have reportedly failed to reach an agreement on pension cuts:

• Producer Price Index (YoY) - Survey:0.8%   Actual:0.7%   Prior:1.7%
• Consumer Price Index (YoY) - Survey:4.0%   Actual:4.5%   Prior:4.1%

CompassFX is having a special webinar with Greg Michalowski this Thursday 4:00PM

• Greece to pledge 20% cut in minimal wage adn not to increase sales tax
• Pledges permanent spending cuts, accelerated labor and product market reforms
• Issue tenders for ports and airport in second half of 2012