BoE Releases Statement on Rates Hurts GBP

Stock markets roared ahead and sterling tumbled after the Bank of England and European Central Bank took unprecedented steps to quash investor fears that they were preparing to reduce monetary stimulus.

Under the chairmanship of new Bank of England governor, Mark Carney, the monetary policy committee issued an unexpected statement to indicate that despite a rise in inflation there was no need for the sharp rise in yields on government bonds, known as gilts. The rise in yields took place in the six weeks since the US Federal Reserve started to discuss reducing economic stimulus, rattling markets amid fears that other central bank would follow.

via The Guardian

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