Pound Falls a Fourth Day as Carney Signals Disinflation Risks
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The pound fell for a fourth day against the dollar, approaching a 14-month low, as Bank of England Governor Mark Carney and Chief Economist Andy Haldane signaled they’re concerned that inflation is slowing.
U.K. government bonds were little changed before a report tomorrow economists said will show the U.K. inflation rate held at a five-year low last month. Carney said in an interview with The Australian newspaper that the U.K. has “huge disinflationary forces coming” from its trade partners. The BOE cut its growth forecasts last week in its quarterly Inflation Report. The implied yield on interest-rate futures fell as Japan unexpectedly sank into recession in the third quarter.