Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Pound jumps as BoE’s Haldane backs rate hike this year

Published 21/06/2017, 12:15
Updated 21/06/2017, 12:27
© Reuters.  Sterling recovers as BoE chief economist says he backs a rate hike

© Reuters. Sterling recovers as BoE chief economist says he backs a rate hike

Investing.com – The pound recovered from early losses after Bank of England (BoE) chief economist Andy Haldane stated Wednesday that he would vote for a rate hike this year.

In the last policy decision by the BoE’s Monetary Policy Committee, three members including Kristin Forbes, Michael Saunders and Ian McCafferty voted in favor of hiking rates by 25 basis points to 0.50%.

In a speech delivered at the National Science and Media Museum in Bradford, Haldane revealed that he was likely to add his name to the list “relatively soon”.

“Having weighed the evidence, I think that the balance of risks associated with tightening 'too early', on the one hand, and 'too late', on the other, has swung materially towards the latter in the past six to nine months,” Haldane explained.

“Certainly, I think such a tightening is likely to be needed well ahead of current market expectations,” he added.

Haldane further admitted that he considered a rate increase at the MPC’s June meeting but held off because he observed “few signs of higher wage growth” and was concerned by “some chance of a sharper than expected slowing in the economy”.

Cable turned higher on the remarks, hitting an intraday high of 1.2700 after having touched session lows of 1.2590. GBP/USD was last up 0.49% at 1.2692.

The pound also rose 0.35% against the yen, while EUR/GBP lost 0.41%.

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.