23 Oct 2013
GBP/USD continues declines on BoE minutes
FXstreet.com (London) - Sterling continues to decline following Bank of England minutes showing unanimous support for continued loose monetary policy, with little indication that the steadily improving UK economy warranted a forward revision of interest rate hike projections.
In reference to BoE forward guidance policies supported by freshly enthroned chairman Mark Carney in August, minutes stated "It now therefore seemed probable that unemployment would be lower, and output growth faster, in the second half of 2013 than expected at the time of the August Inflation Report."
However, quashing any hopes for creeping hawkishness, the minutes added: "It was too soon to draw a firm conclusion from recent labour market outturns about the extent to which productivity would increase.”
Sterling is down 0.55 percent on the day to USD1.6148. It has steadily strengthened since 8 July lows of USD1.4814 thanks to consistently strengthening UK macro data.
In reference to BoE forward guidance policies supported by freshly enthroned chairman Mark Carney in August, minutes stated "It now therefore seemed probable that unemployment would be lower, and output growth faster, in the second half of 2013 than expected at the time of the August Inflation Report."
However, quashing any hopes for creeping hawkishness, the minutes added: "It was too soon to draw a firm conclusion from recent labour market outturns about the extent to which productivity would increase.”
Sterling is down 0.55 percent on the day to USD1.6148. It has steadily strengthened since 8 July lows of USD1.4814 thanks to consistently strengthening UK macro data.