Sterling Firms as Carney Broadens Forward Guidance

Sterling's upward momentum will be tempered by the BoE's credible justification for standing pat on rates despite unemployment reaching its 7% unemployment. The introduction of spare capacity sub-guidance may stand in the way of private economists speeding their forecasts for the next rate hike, but sterling will find support as long as the BoE's policy accommodation greases the wheels of the ongoing recovery and maintains the UK's relative growth story. Full story

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