Sterling hovers near one-week low vs dollar ahead of BoE
Thursday,
07-Nov-2019
02:40 PM (IST)
Britain’s pound hovered near a one-week low versus the dollar on Thursday as the market temporarily shifted its focus from next month’s parliamentary election to a Bank of England policy meeting. With a snap election due on Dec. 12 and a new Brexit deadline set for Jan. 31, the BoE is expected to keep its key policy rate unchanged at 0.75% and not give an explicit steer on where interest rates are headed. Sterling briefly dipped to a one-week low of $1.2837 before steadying around $1.2865. Against the euro, the pound was steady on the day at 86.09 pence. Increasingly economists believe the BoE will cut interest rates at some point next year given a slowing economy and Brexit uncertainty. Financial markets are pricing in a roughly 55% chance of a 0.25 percentage point cut in 2020.
|