Hold high the banner of the Bank of England holding stability factors make the election into confusion pounds.

<P> According to Shanghai Securities News reported, 10 the Bank of England decided to keep interest rates continue to lead the historically low level of 0.5% unchanged, while the decision directly to the market size of the money supply constant, the results in line with market expectations. .</ P> <P> rate decision announcement, the pound was steady against the dollar, or about 1%. .However, due to last week's election, the United Kingdom does not appear in the account for a significant majority party situation, the Conservatives and Liberal Democrats 10, further negotiations to reach an agreement to form a coalition government. .Analysts pointed out that the uncertainty of his cabinet will make the pounds fall into confusion. .</ P> <P> holding stability is still the main tone </ P> <P> Bank of England monetary policy committee decision-making body, held regular monthly policy-making in a brief statement after the meeting that the committee voted to maintain short-term interest rates .at current levels. .The statement also said the bank decided to market directly to the size of the money supply will remain unchanged at 200 billion pounds. .</ P> <P> data showed the UK economy is starting to slow recovery: the government announced in late April data showed a weak first quarter growth of 0.2% in the British economy, down from 0.4% in the fourth quarter of last year, the increase .This makes many people disappointed. .</ P> <P> from February 2008 to March 2009, a total of eight times the Bank of England cut interest rates to stimulate economic recovery, a decline of 5 percentage points. .After more than a year, the UK short-term rates remain unchanged at 0.5% level. .</ P> <P> some observers that the UK deficit-GDP ratio of about 11%, this is a dangerous figure. .From JP Morgan Chase estimates that the UK will need a higher budget surplus, at least 10 consecutive years of surplus to 5% of GDP to a deficit in 2023 will fall back with the ratio of GDP to 2007 levels. .</ P> <P> At the same time, the United Kingdom is extremely uneven economic development, consumer debt burden is too heavy, it will be difficult to shake off recession, the plight of the British. .</ P> <P> Last week, the UK general election, but there was no obvious advantage of the situation of political parties accounted for the last century, the first time since the 70s, the market worried about this. .However, the international rating Moody's said the giant, the United Kingdom general election results in the country "AAA" level will not have a direct impact on sovereign rating, saying the situation was no absolute majority party does not necessarily undermine the ability of the United Kingdom or the intention to stabilize the debt. .</ P> <P> Council sterling future is uncertain </ P> <P> in last week's election, since Cameron became leader of the parliament's biggest party of the right-wing Conservative Party, but did not obtain an absolute majority in parliament .seats, the British Council, the Council will be caught in a rare swing. .Conservatives and Liberal Democrats 10 to hold further talks to reach an agreement to form a coalition government. .Analysts believe that the cabinet will be the uncertainty of the prospect of £ Mengyin. .</ P> <P> foreign body "outside the focal point," said analyst Nicholas Hastings, in the United Kingdom general election, some people hope that the Conservatives will win the general election completely, to quickly launch a deficit reduction plan, to stabilize the financial markets .and to avoid the British sovereign downgrade. .But the election result has forced the market nervous, the United Kingdom will be forced to usher in a coalition government, and may again call an early election, which is very bad for the pound. .</ P> <P> 10 days, the dollar rebounded slightly against the pound, but the poor response rate decision after the announcement, dollar exchange rate for 1% of the increase, in the vicinity of $ 1.5. .Sterling rose against the euro is down 0.6% to 0.86 pounds, the date of the global debt crisis bank rescue to Europe together, boost the euro. .Before the election last week, the pound fell to $ 1.4596 was for the lowest since April 2009. .</ P> <P> However, analysts say that, pound against the U.S. dollar's gains may not be sustained. .At least the short term the euro will be supported by aid programs, and if negotiations take too long the British cabinet, and the delay in the new government composed of a solid, it may lead traders to re-sell pounds. .</ P> <P> present, the market focus is on whether the debt crisis in Europe will further spread to others, including Britain, the financial position of poor countries. .Therefore, the British cabinet related party agreements negotiated breathing space is limited. .However, all parties involved in the negotiations, said no matter what agreement they reached to address the huge budget deficits the United Kingdom will be the core of the agreement. .</ P> <P> restart the dollar repurchase operations </ P> <P> addition to being on their own domestic economic situation, said watching the Bank of England did not forget the debt crisis in response to Europe to take action. .The central bank said the dollar will resume 11th repurchase operation, then once every Wednesday. .</ P> <P> 10 at the Bank of England agreed to join the morning, including the Federal Reserve, European Central Bank, Bank of Canada, Switzerland and joint action to restart the U.S. dollar repo operations to ease the interbank market tensions. .Bank of England said in a statement, "the central bank will continue to view the U.S. based on market conditions repurchase operations." </ P> <P> Under the plan, the Bank of England will be the afternoon of the 11th Beijing have announced details of weekly repurchase operations, .announced repurchase rate, and start bidding. .</ P> <P> British Chancellor of the Exchequer Darling, 10, also revealed that, in the European Union and the International Monetary Fund (IMF) jointly launched the stability of the financial markets and address the debt crisis of the Greek aid program, the British government will contribute up to 80 billion .pounds (about 12.37 billion U.S. dollars). .He said, "Only when the Greek 100% default, this number will increase." </ P>.