Business Magazine

Carney’s Brexit Warning Wobbles Pound Sterling Rates

Posted on the 02 October 2017 by Forex News Shop @forexnewsshop

Mark Carney participated on a BBC radio show in which he covered a number of topics including interest rates rises, the current threat posed to the UK economy by Brexit and the economies growth.

Pound Sterling rates had enjoyed a number of encouraging weeks partly spurred on by this month’s Bank of England meeting and subsequent minutes which stated that the UK economy, although challenged by Brexit had demonstrated encouraging signs with the Bank of England even hinting at the potential of UK wage growth. Markets viewed this buoyancy and subsequent talk of interest rate rise green light and Pound Sterling rates have progressed nicely, enjoying a sustained appreciation over the last two weeks.

Regrettably Carney’s comments yesterday will have done little to add to the positivity. During the Radio emission, he stated in no uncertain terms that the next 2-3 year of Brexit negotiation and transition would damage people’s finances and hurt the UK economy.

Rate Hike?

Carney did, however, stand by the BOE’s stance on gradual interest rate hikes stating that

We can see that in the coming months if the economy continues on this track, it may be appropriate to raise interest rates

He unfortunately, however, gave no indication of when the gradual rises may begin.

In recent weeks, Financial policymakers had been criticised by Jeremy Corbyn leader of the labor party. He defended the bank’s policies pointing reference to the encouraging economic figures. Notably, the UK unemployment levels which are currently the lowest in nearly 50 years.

Pound Sterling Rates

Pound Sterling rates have enjoyed solid growth against the Euro in recent weeks only being shaken by Mark Carney comments surrounding the potential effects Brexit may have on the UK economy. Fortunately, Pound Sterling rates have recovered following a bold claim from David Davis. The Brexit secretary stating that the negotiation team were making

Decisive steps forward

This week GBP/EUR hit a low of 1.3118 from a previous weekly high of 1.1431. The pair closed trading at 1.1341.

Pound Sterling Rates GBP/EUR

The Week Ahead for Sterling

Manufacturing, Construction and services PMI can make or break Pound Sterling Rates this week. As the biggest contributor to the UK GDP services will be watched closely. Services PMI is anticipated to equal last month’s level of 53.2


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Easy Breezy Summertime Looks

    Easy Breezy Summertime Looks

    Mid-Atlantic states are notoriously known for their humid weather in the summer. They rival the swamplands of Florida. The saying, "it's not the heat, it's th... Read more

    The 18 July 2018 by   Bridgetteraes
    FASHION, LIFESTYLE
  • The Xroadie Files

    Xroadie Files

    Revbjelde – Severance Mordecai Smyth – Mellotron, Andy Prince – Chapman Stick, Guest Musicians Severance slow melodic sounds that just seem to work... Read more

    The 18 July 2018 by   Ripplemusic
    ENTERTAINMENT, MUSIC
  • Trump and Putin Might Have Thought Helsinki Summit Was Private, but...

    Trump Putin Might Have Thought Helsinki Summit Private, Intelligence Agencies from Finland Sweden Likely Reported Almost Real Time

    Donald Trump and Vladimir Putin might have thought their meeting in Helsinki yesterday was virtually private, but that almost certainly was not the case, report... Read more

    The 18 July 2018 by   Rogershuler
    LEGAL, SOCIETY
  • Learn the Language of Your Brows "Browmoticons" | Happy Brows

    Learn Language Your Brows "Browmoticons" Happy

    Brows speak volumes about yourself, you can communicate with other people without even speaking with just using your eyebrows. A subtle arch can reflect your... Read more

    The 18 July 2018 by   Rayrose Camille Samson
    HAIR & BEAUTY, LIFESTYLE
  • Wildacres Report

    Wildacres Report

    That was the week that was. About a hundred writers convene on the mountain for a week of workshops, music, partying, and quite a lot of silliness. Read more

    The 18 July 2018 by   Vickilane
    CREATIVITY, PHOTOGRAPHY
  • Ultra-gorgeous Gala Montenapoleone Trunk Show and Bridal Party

    Ultra-gorgeous Gala Montenapoleone Trunk Show Bridal Party

    Love4Weddings Love4Weddings - A Stylish Wedding Blog Σήμερα, σας παρέχουμε μια μικρή γεύση από το ονειρικό trunk show του οίκου Gala Montenapoleane και του... Read more

    The 18 July 2018 by   Love4weddings
  • The Ultimate Romantic Wedding Inspiration | Love4Weddings Bridal Party

    Ultimate Romantic Wedding Inspiration Love4Weddings Bridal Party

    Love4Weddings Love4Weddings - A Stylish Wedding Blog Σε αποχρώσεις του απαλού ροζ και του αστραφτερού χρυσού, στολίστηκε ο υπέροχος εσωτερικός χώρος του... Read more

    The 18 July 2018 by   Love4weddings

Magazines