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EURGBP: BoE’s Haldane Reluctant to Cut Rates Unless Sharp Economic Downturn

The initial volatility in the British Pound following the announcement of Boris Johnson as the new British PM has cooled off, as markets digest these comments from the BoE’s Chief Economist. EURGBP is presently trading at 0.89727.

“I would be very cautious about considering a monetary policy loosening, barring some sharp economic downturn.”

These were the words of the Chief Economist of the Bank of England, Andy Haldane, speaking in Scunthorpe, Northern England at local business event. Haldane also believes the housing market in the UK may have reached a bottom, and that underlying UK growth is showing steadiness in spite of Brexit-related volatility. In his words, interest rate direction should not be an automatic event, irrespective of whether there is a Brexit deal or not.

“The market path of interest rates is not an accurate reflection of the most likely path of interest rates,” he further opined. Reuter’s news agency monitored the speech, and the comments captured above are pooled from the quoted statements of Haldane as captured by Reuters.Don’t miss a beat! Follow us on Twitter.

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