Pound Drop a Bright Spot for BOE Amid Cocktail of Threats: Chartby
As a “dangerous cocktail”of threats loom over the U.K. economy, Mark Carney and his fellow Bank of England policy makers can take comfort from the fact that a strengthening pound is not among them.
After rising to a seven-year high in August on a trade-weighted basis, the pound has fallen 3.8 percent in the past eight weeks. That may be relief to the BOE after its warnings that sterling strength would be a “persistent” drag on inflation. At just 0.1 percent, U.K. consumer-price growth is far below the BOE’s 2 percent goal and needs all the help it can muster to get back to the target. For more details, click here.