Sterling Has Limited Scope to Rise After BOE Pushback Against Rate Rise Bets
Dow Jones07-31
1338 GMT - The Bank of England's failure to signal imminent interest-rate rises is likely to hold back sterling, MUFG Bank analysts say in a note. The BOE voted 6-3 to keep rates unchanged Thursday with three preferring to raise rates. Policymakers remain concerned about inflation risks but BOE Governor Andrew Bailey said markets shouldn't leave the meeting believing the central bank is edging towards raising rates. "For sterling, the communication remains supportive, but the deliberate pushback against rate hike expectations limits the scope for upside," the analysts say. Sterling drops 0.3% to $1.3419. The euro trades flat at 0.8557 pounds.
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