Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Hawkish Shift Boosts The Pound

Published 21/06/2018, 12:20
Updated 18/08/2020, 10:10

The Bank of England have kept the official rate at 0.5% as was widely expected but an additional dissenter has caused the pound to spike higher.

Chief economist Andy Haldane joined the 2 other hawks in calling for a rate hike. Today’s meeting was seen by many as having very little chance of delivering a material change in policy with the focus on any signals for the next meeting and there’s been several strong hints towards an August hike.

As well as the change in voting pattern, a key line from the accompanying statement which read that all members are more confident that the Q1 slowdown is temporary have caused a pretty strong hawkish reaction in the markets with the pound bouncing strongly from its lowest level in 7 months against the US dollar while the FTSE has dropped lower.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.