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18 Jul 2013
Flash: Recent GBP weakness pinned on BoE – UBS
FXstreet.com (New York) - According to Syed Mansoor Mohi-uddin, a Strategist at UBS, “The recent weakness of GBP is due to the prospect of the Bank of England adopting forward guidance in setting monetary policy in future when it publishes its next Inflation Report on August 7.”
In particular, the contents of the Report will inform the decisions taken at the next Monetary Policy Committee on August 1. “We know this from the statement issued after this month’s MPC meeting. The communication was only the third time the BoE have issued a post-meeting statement since the MPC was formed in 1997, and it was also noteworthy for its warning that recent increases in Gilt yields were 'unwarranted'.” Mohi-uddin adds.
In particular, the contents of the Report will inform the decisions taken at the next Monetary Policy Committee on August 1. “We know this from the statement issued after this month’s MPC meeting. The communication was only the third time the BoE have issued a post-meeting statement since the MPC was formed in 1997, and it was also noteworthy for its warning that recent increases in Gilt yields were 'unwarranted'.” Mohi-uddin adds.