Please try another search
© Bloomberg. A pedestrian walks past the Bank of England (BOE) in the City of London, U.K., on Tuesday, Aug. 4, 2020. Bank of England officials could signal on Thursday that the case for more monetary stimulus is growing as a nascent rebound from the pandemic-induced recession risks fading.
2/2
(Bloomberg) --
The pound extended its advance after the Bank of England maintained its policy stimulus and signaled rates would stay low.
The central bank kept interest rates and bond purchases unchanged on Thursday as expected and said it won’t tighten policy until inflation moves sustainably to its target. The currency advanced as much as 0.5% to $1.3183 after the early morning announcement in London.
Sterling is coming off the back of its strongest July since 1990, thanks to a weakening dollar. That has made up for its losses since Covid-19 led to lockdowns in March, when the currency nosedived to its lowest level in 35 years.
Investors have also been piling into the U.K.’s bonds, leading benchmark 10-year yields to touch record lows this week. Markets have been given confidence by the BOE’s debt purchases soaking up some of the government’s extra borrowing to fund its crisis response. The pace of purchases will slow to 4.4 billion pounds ($5.8 billion) a week starting Aug. 11 from 6.9 billion pounds.
Economists surveyed by Bloomberg expect the central bank’s asset-purchase target to be increased again by the end of this year, while money markets are betting on more interest-rate cuts in 2021.
©2020 Bloomberg L.P.
By Gina Lee Investing.com – Gold was up on Tuesday morning in Asia as the dollar weakened. Investors also remain concerned about potential interest rate hikes to curb rising...
LONDON (Reuters) - Britain wants to see progress soon in talks with the European Union on solving the post-Brexit Northern Irish border riddle, with its minister in charge of ties...
By Ritvik Carvalho LONDON (Reuters) -Sterling held on to recent gains against the dollar on Monday as Britain took a big step towards reopening its economy, lifting a number of...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.