Contrasting sharply with the more dovish remarks issued a day earlier by Bank of England Governor Mark Carney, the Central Bank’s Chief Economist Andrew Haldane took to the stage with a more hawkish outlook for monetary policy. During his remarks, Haldane highlighted the possibility of raising rates and tightening policy before the end of the year.
Even though risks from Brexit may unfold throughout the second half of the year, inflation outpacing wage gains could come back to hurt the economy if left unchecked according to the policymaker. His comments were enough to spur a spike in the Pound, sending the currency higher against most peers before pulling back from earlier strength. After the steep rally on the back of more hawkish sentiment, Sterling has given back all earlier gains against the Euro, with the EURGBP pair mostly flat on the session, trending just above 0.8800.