Brexit-Driven Pound Drop Tests How ‘Indifferent’ Carney Can Be
- U.K. currency has weakened further toward parity with the euro
- Trade-weighted rate close to level when Carney last commented
A collection of five, ten, twenty and fifty British pound banknotes sit in this arranged photograph in London, U.K., on Thursday, Oct. 13, 2016. The U.K. currency is getting harder to trade, and to predict, because the nation’s exit from the European Union has changed the rules of engagement.
Photographer: Miles Willis/BloombergThe pound’s latest Brexit-fueled decline may be getting serious enough to command Mark Carney’s attention once again.
Sterling’s weakening to the lowest since October 2016 in trade-weighted terms has brought the currency near the level that prompted the Bank of England governor to point out at the time that he and his colleagues weren’t “indifferent” to the exchange rate. That suggests any remarks from policy makers will now be scrutinized all the more for any reference to their thinking on its impact.