020 7898 0500Back in September, BoE Governor Mark Carney said that the possibility of a UK interest rate rise in November had definitely increased. The comments came in relation to the increase in UK inflation to 2.9%. However, since then, there has been repeated evidence that the UK economy is weakening and continued uncertainty over Brexit.
In response to this, BoE Deputy Governor Sir Jon Cunliffe yesterday said it was an ‘open question’ on whether interest rates will rise. While this can reasonably be described as a fairly neutral comment, the lack of conviction sent sterling tumbling against the euro and US dollar as expectations of a rate rise decreased.
Other than Cunliffe’s comments, it was a relatively quiet day for the UK. Today is busier, as we’ll see the GDP growth rate for the last quarter and the year. We’ll also see the mortgage approvals. More negative data could see sterling slide further.
