Pound tumbles as new member of Bank of England supports low interest rates:admin Forex Comments (3)
The Newest member Gertjan "Jan" Vlieghe of the Bank of England's Monetary Policy Committee comments that he is relaxed about keeping the interest rates at a record low for now makes Sterling to tumble below $1.50.His comments is also reinforcing the dovish stance adopted by colleagues including Governor Mark Carney.
Pound also dropped against 12 of its 16 major peers before reports this week which, according to economists, will show slowdowns in manufacturing and construction. Economic growth has to “stabilize or even pick up a bit” and wages need to rise more strongly before the bank should consider its first rate increase since 2007, new policy maker Gertjan Vlieghe said in an interview with the Sunday Times newspaper.
The pound fell 0.2 percent to $1.5004 as of 11:46 a.m. London time, having slipped to $1.4998, the weakest level since April 23. It was little changed at 70.44 pence pence per euro, after dropping 0.5 percent last week, its biggest drop in two months.
Carney said the economy was facing “some real headwinds” from abroad, according to comments reported Saturday by the Gazette newspaper during a visit to Middlesbrough, northeast England.