Pound Remains Soft as Carney Speaks About Low Interest Rates

The Great Britain pound fell yesterday and retained losses today as Bank of England Governor Mark Carney reiterated in his speech the commitment to keep interest rates low for a prolonged period of time.

Carney said during his speech at Cass Business School in London:

As the MPC has signalled, a low for long interest rate environment will likely be with us for some time. The MPC’s new guidance that any adjustments in rates, when they come, will be limited and gradual helps provide confidence to households and businesses that the MPC won’t take risks with the recovery.

As one could expect, such comments did not help the sterling, which was already struggling despite positive fundamentals.

GBP/USD declined from 1.6635 to 1.6590 yesterday and resided near this level as of 4:37 GMT today. GBP/JPY traded at 168.37 after falling from 169.29 to 168.30.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.