LONDON MARKETS: 'Shock' Bank Of England Rate-cut Talk Sends British Pound Below Key Level
27 September 2019 - 7:47PM
Dow Jones News
By Steve Goldstein, MarketWatch
The British pound came under pressure after a Bank of England
official thought to be a hawk on interest rates suggested rates may
need reducing.
Michael Saunders, who in 2017 voted for rate hikes, said in a
speech that "persistently high uncertainty," even if the U.K.
reaches a deal with the European Union, will make it "probably"
appropriate to maintain an expansionary monetary policy "and
perhaps to loosen further."
"This came as a shock - Saunders is known as a hawk, but his
stance here was very dovish," said Ricardo Evangelista, senior
analyst at ActivTrades.
The pound fell under $1.23 for the first time in three weeks,
sliding to $1.2286 from $1.2323 on Thursday.
The pound's weakness by contrast spurred gains for the FTSE 100
, with the stock market index rising
Gains were led by Pearson (PSON.LN) , which despite a 3% advance
is still much lower than where it stood before warning on U.S.
higher education revenue on Thursday.
(END) Dow Jones Newswires
September 27, 2019 05:32 ET (09:32 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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