Sterling was weaker across the board after BoE Governor Carney delivered his postponed speech. It came after the BoE voting behaviour led many to believe that a rate hike may be imminent as inflation pushes higher. However, those in favour of a rate hike were brought back down to earth by Carney.
He said, “from my perspective, given the mixed signals on consumer spending and business investment, and given the still subdued domestic inflationary pressures, in particular anaemic wage growth, now is not yet the time to begin that adjustment.”
Looking to the day ahead, we have the public sector borrowing numbers. In addition, the BoE Chief Economist Andy Haldane is due to speak in Yorkshire and could pour more cold water on those hoping for a rate hike.
The highlight of the day will probably be the Queen’s Speech, along with the opening of Parliament. With no official announcement surrounding the Conservative and DUP alliance, the market will be keen to see how the next parliamentary term will unfold.