UK pound is heading lower again, dropping as economic concerns once again dominate the situation. Worries about what’s next for the British economy are weighing on the sterling, sending it lower across the board.
Last week, the Bank of England indicated that the economic recovery in the United Kingdom would be slow, and that there wasn’t much to be expected in the near term. However, many are looking forward toward the quarterly inflation report expected to be released by the BOE. In it, there are expectations that the growth forecast will, once again, be revised downward.
The slow economic growth means that easing programs will likely remain in place, and even that the asset purchase program ay be expanded if BOE policymakers think that it will help growth. The problem, though, is that inflation continues to remain above the 2 per cent target, forcing policymakers to walk a very thin line.
Many are also interested to see what happens later this year when Mark Carney takes over as governor at the Bank of England. There is a lot happening, and UK pound can’t seem to keep up.
At 15:11 GMT GBP/USD is down to 1.5677 from the open at 1.5803. EUR/GBP is up to 0.8528 from the open at 0.8460. GBP/JPY is down to 146.2550 from the open at 146.5300.
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