Flash: GBP drops in light of BoE - BMO

FXstreet.com (London) - Stephen Gallo, Head of Currency Strategy at BMO said there were two reasons, primarily, why the GBP fell in the event of a BoE statement this afternoon.

Key Quotes:

“The first is that we have to assume any communication with the financial markets today will be a comprehensive attempt to reiterate was has been said previously”.

“Interest rates need to remain well anchored at low levels”.

“The second is that the financial markets at large are still paying too much attention to the monetary side of the equation, and not the financial policy side of the equation instead”.

“To quote Governor Carney’s Nottingham speech last week”.