During prepared remarks delivered at the International Monetary Fund in Washington, Bank of England Governor Mark Carney cautioned markets that the pace of any monetary tightening would be gradual and limited in scope. In his speech, he commented on the inflationary developments that could beckon higher rates, especially if they persisted over the coming months. Furthermore, he highlighted growth in the economy, cementing the idea that if the overall trajectory continued to be positive, the Monetary Policy Committee could potentially deem it appropriate to reduce the current level of accommodation and support for the economy. His observations cooled strength in Sterling, quickly sending the Pound tumbling after the UK currency rose to the highest point against the US dollar since the Brexit referendum on Monday. The GBPUSD is currently recovering from Monday’s loss, briefly retaking the 1.3550 level.
Bank of England Walks Back Tightening Sentiment
Daily Analysis - 19/09/2017