BOE's QT Plans Unlikely to Have Major Negative Impact on Sterling
Dow Jones09-18 16:50
0850 GMT - The Bank of England's overhaul of its quantitative tightening program weighed on sterling alongside U.K. government bond yields Thursday but the impact on the currency should prove limited, MUFG Bank's Derek Halpenny says in a note. The BOE's announcement should help contain long-end gilt yields, reducing risks to the market ahead of the October budget, he says. This should limit the fallout for sterling, especially with the BOE likely to raise rates in November, he says. Sterling rises 0.1% to $1.3370 after reaching a seven-week low of $1.3333 Thursday, LSEG data show. The euro trades flat at 0.8587 pounds after hitting a two-week high of 0.8606 Thursday.
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