BoE Releases Statement on Rates Hurts GBP

Stock markets roared ahead and sterling tumbled after the Bank of England and European Central Bank took unprecedented steps to quash investor fears that they were preparing to reduce monetary stimulus.

Under the chairmanship of new Bank of England governor, Mark Carney, the monetary policy committee issued an unexpected statement to indicate that despite a rise in inflation there was no need for the sharp rise in yields on government bonds, known as gilts. The rise in yields took place in the six weeks since the US Federal Reserve started to discuss reducing economic stimulus, rattling markets amid fears that other central bank would follow.

via The Guardian

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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