Local: Fri
Sydney: Fri
Select Destination
Location Time Temp
Sydney Fri26°
Melbourne Fri26°
Brisbane Fri27°
Perth Fri25°
Adelaide Fri
Hobart Fri19°
Canberra Fri26°
Darwin Fri29°

news

Get our help FREE advice or find service providers with our bookJobs Now

Pound Climbs on Andy Haldane’s Rate Hike Comments

21 June 2017 by News Desk

In a surprise move for markets this week, the pound enjoyed a rally following comments from Bank of England (BoE) Chief Economist Andy Haldane, who suggested he may call for an interest rate hike ‘relatively soon’.

This comes just a day after BoE Governor Mark Carney dampened markets with his Mansion House keynote speech where he stated that now is not the time for interest rate increases. The announcement from Carney came shortly after the Monetary Policy Committee (MPC) voted 5-3 to keep rates on hold – a move that shocked investors that had expected only one hawkish policymaker to call for adjustments to the bank rate.

Haldane said in a speech in Bradford on Wednesday: ‘Having weighed the evidence, I think that the balance of risks associated with tightening “too early”, on the one hand and “too late” on the other, has swung materially towards the latter in the past six to nine months.

‘A partial withdrawal of the additional policy insurance the MPC put in place last year would be prudent relatively soon, provided the data come in broadly as expected in the period ahead. Certainly, I think such a tightening is likely to be needed well ahead of current market expectations.’

The pound sterling to Australian dollar (GBP/AUD) exchange rate was trending around 0.59% higher late in Wednesday’s European session, at levels of 1.6772. GBP/AUD had reached daily highs of 1.6802.

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

Learn more about the Australian Dollar – Contact FC Exchange: Get A Quote

Want to live and work Down Under? Click here for expert help: Skilled Migration to Australia

Want to get a job Down Under? Click here for expert help: How to Get a Job in Australia

Click here for expert help with travel visas: Travel Visas to Australia

Click here for tourist information about Australia: Visit Australia



We use cookies on Thinking Australia

This website uses cookies to ensure you get the best experience on our website. Please confirm permission to use cookies.
Cookie Policy Privacy policy