Economy

Pound hits highest since Brexit vote on rate rise speech

Pound hits highest since Brexit vote on rate rise speech”

Its tilt towards the first interest rate hike in more than a decade, and additional comments from Governor Mark Carney, saw sterling climb over 1% to hit $1.34 for the first time in over a year.

"Admittedly, the Bank of England has previously talked up the likelihood of an interest rate hike then failed to follow through, but there does seem to be a more concerted effort this time around and more unanimity within the MPC of the case for a hike". It extended those gains to $1.3450 on Friday, up half a percent on the day.

Against the euro, it gained 0.3 percent to 88.75 pence.

The pound has continued to rise on currency markets this morning and gilt yields have surged further as further hawkish commentary from the normally dovish MPC policymaker Gertjan Vlieghe built on the unexpectedly hawkish tone yesterday from the Bank of England on the potential for a possible move in interest rates.

The Bank kept rates at 0.25% this week, but hinted at a rise in the future.

This signalling has gone a long way to help underpin the pound this week, particularly if we get further hawkish rhetoric from these other central banks that suggest they may also look to tighten policy in the coming months.

Brexit headlines were also on investors' radar ahead of a speech in Florence on Friday by British Prime Minister Theresa May.

Yields on the United Kingdom government's two-year debt climbed to levels last seen before the nation voted to leave the European Union.

Brussels has said talks on Britain's future trading relationship with the European Union can only start after the other 27 European Union governments are satisfied that "sufficient progress" has been made on the terms of the departure.

However, Mr Carney said that "any prospective increases" in the Bank's benchmark interest rate would be made at "a gradual pace and to a limited extent" and would need to continue providing "substantial support to the economy".

"We're still in the middle of Brexit negotiations, we've got the Conservative party conference coming up and we're in a time of political uncertainty".



Like this

Latest


19 September 2017
PGA Tour Partners with Genius Sports to create Integrity Program
The new Integrity Program will be a part of all six pro tours (approximately 140 events) that the PGA Tour oversees. Within the program are workshops and e-learning modules.

19 September 2017
Angry Rishi Kapoor calls cartoon on RK Studio fire 'depraved sick humour'
He stated that a studio can be rebuilt but the memorabilia, the costumes that were lost in the fire were irreplaceable. The studio, established by Raj Kapoor in 1948, was taken over by son Randhir Kapoor after his death in 1988.

19 September 2017
'We really have a chance,' Trump says on Israeli-Palestinian peace
At the conclusion of the exchange, Netanyahu told reporters: "What is important is the substance, not the words". Trump in his remarks - unlike Netanyahu - emphasized his hopes for a brokered Israeli-Palestinian peace.

19 September 2017
McEwen Mining Inc. (NYSE:MUX) Vs. Industry Vs. Sector Growth Analysis
The current share price indicates that stock is -2.37% away from its one year high and is moving 15.15% ahead of its 52-week low. Its minimum price target estimates has been figured out at $5 while the maximum price target forecast is established at $5.

19 September 2017
Morrissey reveals new single 'Spent The Day In Bed'
Morrissey repeats in the chorus his recommendation that you "Stop watching the news /Because the news contrives to frighten you". The track delivers us all the classic Morrissey magic with a new contemporary energy, have a listen below.

19 September 2017
'The Handmaid's Tale,' politics and 'SNL' dominate the Emmys
Voters in the Academy of Television Arts & Sciences crowned HBO's " Veep " the best comedy for the third year in a row. Similarly, the " Black Mirror " episode recognized as best TV movie , "San Junipero", focused on a lesbian love story.

19 September 2017
Netanyahu meets el-Sisi in NY for the first time
He told them that he believes the best way to advance the peace process was through a regional approach involving the Arab states. In a statement, the Prime Minister's Office said that the two met for about an hour and a half at Sisi's hotel.

19 September 2017
Gurmeet Singh: Haryana police files FIR against Honeypreet for inciting Panchkula violence
Sandhu on Monday said that the names in the list could increase as the investigation into the entire episode was under way. The officer also said that Ram Rahim is not allowed to have any contact with other prisoners.

19 September 2017
XL Group chose Dublin as 'natural home' for its European Union insurance carrier
Today XL Group has insurance and reinsurance operations as well as corporate functions based in its office in Dublin. As we face into the challenges of Brexit, we are determined to pursue and seize new opportunities", she added.

19 September 2017
Exhausted of being sexually assaulted by her son, mother gets him killed
A woman, her son and his accomplices from Bhayander have been arrested for murdering her younger son on her instructions. A woman was arrested in Vasai Sunday for allegedly paying her son and his friends to murder her younger son.



Recommended