UK pound is still struggling, thanks in large part to concerns over the low inflation rate. Bank of England policymakers left matters unchanged at its most recent meeting, and sterling is lower against many of its counterparts.
Even though there have been signs of recovery in the UK economy, the pound continues to struggle, especially against the US dollar. Bank of England policymakers kept the lending rate at 0.5 per cent after its most recent meeting. On top of that, the BOE is keeping its asset-buying program unchanged.
One of the issues cited by BOE Governor Mark Carney is the fact that inflation continues to remain low. Policymakers have been trying to nudge inflation higher with its quantitative easing program, but so far it’s been difficult to give prices a boost. Carney even hinted that there might be a chance that the BOE would cut rates further if necessary.
This news is weighing on the sterling, even with other positive signs of economic growth. Sterling is struggling especially against the US dollar, since there is a contrast in the situations between the countries.
At 12:19 GMT GBP/USD is down to 1.5183 from the open at 1.5231. EUR/GBP is down to 0.7211 from the open at 0.7240. GBP/JPY is down to 182.2060 from the open at 183.0050.
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