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British Pound showing weakness


The British Pound showed weakness among the main reserve currencies according to the head of the Bank of England.

In his speech on January 9, Mark Carney once again noted that the situation around Britain’s exit from the EU is negatively affecting the growth rate of the British economy.

Mark Carney noted that the British economy is in a weaker state than the economies of the other G7 countries. We can observe a tendency to lower growth rates compared to the global economy.

Carney said that members of the monetary policy committee of the Bank of England “expect improvement in economic performance” in the future.

The improvement of the British economy’s growth rate is “not guaranteed”

At the same time, according to him, the improvement of the British economy’s growth rate is “not guaranteed”. Carney promised that the Bank of England could take additional measures to support the economy and the financial sector. He said that the British Central Bank could decide to increase the asset purchase program, as well as reduce interest rates by 0.75%. In general, these measures, according to his estimates, can be comparable with a decrease in interest rates by 2.5%.

The pound / dollar quotes tested values in the region of $ 1.3020 per pound. During the day the British currency was able to win back part of the losses. The pound adjusted to the level of $ 1.3050 per pound.

A number of experts noted that under the leadership of Carney, as well as his successor as head of the British Central Bank, a new easing of monetary policy in the UK in 2020 could occur similar to a decrease in interest rates in the United States in 2019. The Bank of England could lower rates and increase the amount of quantitative easing (QE), as well as the US Federal Reserve, has carried out a series of rate cuts amid fears of a worsening trade war between the US and China.

Lena S.
Lena is an adventurous soul searching the world for truth and balance. She is a mother of 2 beautiful daughters and a full time writer for Financial News where she covers various topics from finance, government, politics, current events, crypto and technology.

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