GBP Falters After BoE Inflation Report Keeping Rate Hike to 2015

The British pound slipped to a four-week low against the dollar on Wednesday morning after investors were left disappointed following the Bank of England’s (BoE) inflation report.

The U.K. central bank left its growth and inflation forecasts broadly unchanged, meaning a rise of its main benchmark rate is still expected in the first half of 2015. This surprised markets and a recent run-up in the currency quickly reversed after the release. Sterling fell to $1.6757 after trading higher for much of the session and peaking at $1.6874.

BoE Governor Mark Carney played down expectations of an earlier-than-expected rise in interest rates at a press conference following the report. He said that a hike would depend on the degree of slack in the U.K. economy, and the prospects for its absorption.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza