Economics
Pound Slides From 11-Month High as BOE Keeps Rates Unchanged
- Sterling falls after MPC votes 6-2 to keep key rate at 0.25%
- Gilts advance as BOE cuts 2017 growth, wage forecasts
Economist Says BOE Seeing Pound-Related Inflation
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The pound slid from an 11-month high versus the dollar and U.K. government bonds rallied after the Bank of England voted to keep interest rates unchanged, while also cutting the country’s economic growth forecast.
Sterling dropped to its weakest level versus the euro this year as money markets showed traders pushed back expectations for a rate hike to November 2018 from August 2018 prior to the decision. The BOE’s Monetary Policy Committee voted 6-2 in favor of keeping rates unchanged at a record-low 0.25 percent. The central bank lowered its economic growth projections to 1.7 percent this year from 1.9 percent.