Sterling fell by almost a full cent against the dollar on Tuesday after Bank of England governor Mark Carney said now was not the time to raise interest rates, dashing some investors’ hopes that the central bank had shifted in that direction.
Speaking to London’s banking community alongside finance minister Philip Hammond a day after Brexit talks started, Carney cited weak wage growth, mixed signals on consumer spending and business investment as reasons for not moving to raise interest rates any time soon.
Sterling sank from $1.2758 to a one-week low of $1.2669 after the text of Carney’s postponed Mansion House speech was released. It also fell over half a percent to a five-day low of 88.02 pence per euro.
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