Minutes from the Bank of England’s latest policy-setting meeting failed to have a lasting impact on sterling Wednesday, with strategists broadly agreeing that they cast no new light on the Bank’s timetable for a first rate hike.
Although the release initially spurred a rise in the currency, with some members of the Monetary Policy Committee saying they were “surprised” by the low probability investors attached to a shift in interest rates this year, the lift proved temporary.
Having surpassed the $1.70 mark earlier in the day, the pound retreated to settle around $1.6945 in late European trade, as rate setters also added that they continue to see “considerable uncertainty” over the amount of spare capacity in the economy—an important measure in the bank’s decision on when to raise rates.
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