Economics
Pound Touches Two-Week Low as BOE Leaves Monetary Policy on Hold
- All 62 economists in Bloomberg survey forecast no rate change
- Gilts lead global bonds lower after hawkish Fed outlook
BOE Holds Rates Steady as Pound Fights Inflation
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The pound dropped to a two-week low after the Bank of England voted 9-0 to keep monetary policy unchanged.
Sterling weakened versus most of its 16 major peers. The U.K. currency climbed 2.2 percent against the dollar in November, posting its first monthly gain since April. Still, the pound has slumped 16 percent since Britain voted in June to leave the European Union, making it the Group-of-10’s worst-performing currency this year. In its last policy decision of 2016, the Monetary Policy Committee said sterling’s recent recovery could mean “less of an overshoot” above its 2 percent inflation goal than previously predicted.