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Sterling's drop after BoE stimulus small compared with Brexit vote - Broadbent

Published 05/08/2016, 08:48
Updated 05/08/2016, 08:50
© Reuters.  Sterling's drop after BoE stimulus small compared with Brexit vote - Broadbent

LONDON (Reuters) - The pound's drop after the Bank of England unleashed billions of pounds of stimulus was "relatively small" compared with its fall after the June vote to leave the European Union, Deputy Governor Ben Broadbent said on Friday.

Asked if the BoE's real intention was to devalue the pound, Broadbent told BBC radio that this was not true.

"The pound did fall very sharply immediately after the referendum and has since been relatively stable," he said. "Certainly compared with that immediate move, the move yesterday on the announcement of these measures was relatively small."

Broadbent said he was "pretty confident" that the BoE's stimulus package would have some effect and that he did not agree that the central bank's actions reflected panic.

On Thursday the BoE cut interest rates to record low 0.25 percent and expanded its quantitative easing programme by 60 billion pounds.

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