Once again, the Bank of England has left rates steady, near record lows. The latest release of minutes indicates that there are still headwinds for the UK economy, and the MPC members are concerned about the possibility of an exit from the European Union (known as the Brexit). The result is a lower sterling, pretty much across the board.
UK pound is heading lower today, dropping as the release of the latest minutes from the Bank of England’s Monetary Policy Committee are released. The concerns expressed in the minutes are adding more to the downward pressure on the sterling.
Even though there was some positive data earlier this week, that has been overshadowed by the release of the minutes. Concerns about the potential Brexit are still on the radar, especially since policymakers warn that a referendum result that means leaving the European Union could cause even more economic headwinds — and they acknowledge that there are already enough of those headwinds to cause concern.
While the MPC does expect to see more CPI growth over the course of the coming year, in the short-term there are worries.
At 15:50 GMT GBP/USD is down to 1.4141 from the open at 1.4204. EUR/GBP is up to 0.7961 from the open at 0.7937. GBP/JPY is down to 154.4080 from the open at 155.3030.
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