Pound Weakens After BoE Decision
21 March 2024 - 9:13PM
RTTF2
The pound declined against its major counterparts in the
European session on Thursday, as the Bank of England left its
benchmark rate unchanged at a six-year for the fifth straight
session.
The Monetary Policy Committee, led by Governor Andrew Bailey,
voted 8-1 to keep the bank rate unchanged at 5.25 percent. The rate
was the highest since early 2008.
Swati Dhingra sought a quarter point reduction to 5.00 percent.
Dhingra assessed that waiting for more reassurance before reducing
Bank Rate would weigh further on living standards and supply
capacity.
The policymakers said the MPC remained prepared to adjust
monetary policy as warranted by economic data to return inflation
to the 2 percent target sustainably.
"…the Committee would keep under review for how long Bank Rate
should be maintained at its current level," the bank said.
The pound fell to 1.2725 against the greenback, from a 1-week
high of 1.2803 seen at 3:10 am ET. At yesterday's close, the pair
was quoted at 1.2785. If the currency falls further, it is likely
to test support around the 1.24 region.
The pound declined to 192.24 against the yen from yesterday's
close of 193.38. Should the currency falls further, it is likely to
test support around the 183.00 region.
The pound eased to 1.1367 against the franc, from more than a
9-month high of 1.1459 hit at 4:35 am ET. The pair was worth 1.1338
at yesterday's close. The currency may locate support around the
1.11 level.
The pound dropped to near a 3-week low of 0.8573 against the
euro, from a 9-day high of 0.8528 seen at 5:30 am ET. The pair was
valued at 0.8542 at yesterday's close. The currency is seen finding
support around the 0.88 level.
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