Pound slides after Bank of England surprise statement

Suzie Neuwirth

STERLING fell against other currencies and bond yields tumbled today, after the Bank of England indicated that it would not raise rates.

The central bank held interest rates and quantitative easing as widely expected.

However, in an unexpected statement today after new governor Mark Carney’s first meeting, the central bank said that while inflation is set to rise further in the near term, “the implied rise in the expected future part of Bank Rate was not warranted by the recent developments in the domestic economy”.

Sterling was 1.2 per cent down against the dollar to 1.5095 and 1.1 per cent down against the euro to 1.1618 at 13.30 GMT.