Mark Carney's first week: Pound slumps below $1.50 after new governor backs more monetary stimulus
Sterling hits its weakest since mid-March
The pound has slumped to a four-month low, below $1.50, after the Bank of England's denial that it plans any interest rate hike.
Dipping to $1.4991, Sterling hit its weakest since mid-March. It also weakened against the euro, though not so dramatically.
The news follows a statement after new governor Mark Carney's first policy meeting, in which he effectively ruled out rate rises for years to come. The bank's Monetary Policy Committee left interest rates at their historic low of 0.5%, and quantitative easing - the electronic creation of new money - unchanged at £375bn.
Nawaz Ali, market analyst at Western Union Business Solutions, told Reuters: "An unusual statement with guidance was proof for sterling bears [investors who believe the pound will decline in value] that Carney's arrival will mark the start of more monetary activism.
"Investors have every reason to anticipate a change in monetary policy in the coming months, which will mean more downside for sterling."
And Mario Draghi, head of the European Central Bank, said on Thursday that they were taking unprecedented steps to give so-called forward guidance to reassure the markets that it had no plans to raise interest rates soon.
- 1 Scientists create transparent mouse complete with see-through organs
- 2 Pope Francis issues top 10 tips for happiness
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 Putin v Obama: Russian deputy prime minister mocks president with catty pictures on Twitter
- 5 Israel's propaganda machine is finally starting to misfire
Russell Brand accuses Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness
Kenny Ireland dead: Benidorm actor dies aged 68
Justin Bieber posts Instagram photo of Orlando Bloom crying after Ibiza fight 'over Miranda Kerr'
Putin v Obama: Russian deputy prime minister mocks president with catty pictures on Twitter
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...
£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...