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

Sterling spikes after hawkish remarks by BoE member

Published 21/06/2017, 14:15
Updated 21/06/2017, 14:15
© Reuters.

© Reuters.

Investing.com - The pound jumped Wednesday after hawkish remarks by the Bank of England’s chief economist Andy Haldane.
Sterling was up 0.51% at $1.2695 at 08:15 ET after a high of $1.2708.
Earlier sterling fell to an intraday low of $1.2590 as the Conservatives remained in talks with the Democratic Unionist Party of Northern Ireland to form an alliance to allow it to govern.
Prime Minister Theresa May earlier Wednesday presented her legislative agenda in the Queen's speech with the emphasis on Brexit talks.
“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 said. Haldane said he considered a rate hike in June.
Consumer price inflation has jumped well above the Bank of England’s 2% target as a result of the depreciation of the pound.
“Provided the data are still on track, I do think that beginning the process of withdrawing some of the incremental stimulus provided last August would be prudent moving into the second half of the year.” Haldane added.
Three Bank of England Monetary Policy Committee members dissented against the bank’s decision last week to hold its bank rate at an historic low of 0.25% and maintain its quantitative easing program.
Governor Mark Carney said earlier this week he felt it was not the right moment for the Bank of England to tighten policy.

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.