The pound fell to the lowest level in seven weeks against the euro as the Bank of England said policy makers were unanimous in rejecting higher interest rates, damping demand for Britain’s currency.
Sterling weakened versus 10 of its 16 major peers. The nine-member Monetary Policy Committee voted 9-0 to keep their quantitative-easing target at 375 billion pounds ($606 billion), according to the minutes of the Oct. 8-9 meeting published in London today. All members also agreed to hold the benchmark interest rate at a record-low 0.5 percent. Governor Mark Carney is due to speak in London tomorrow. Gilts advanced, with 10-year yields falling to an eight-week low.
“The Bank of England wants to head off the market bringing forward the expected start date of tightening,” said Paul Robson, a foreign-exchange strategist at Royal Bank of Scotland Group Plc in London. “There isn’t a huge amount of sterling news. People may be worried about what Mark Carney might say tomorrow.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015