LONDON: The pound touched its lowest level in two weeks versus the dollar as Bank of England Governor Mark Carney said in testimony to lawmakers that Britain’s low-interest rate environment is likely to remain for some time.
Sterling declined for a second day versus the euro as BOE Chief Economist Andrew Haldane, who, like Carney, addressed lawmakers in London on Tuesday, said risks to the inflation outlook were to the downside. The central bank’s latest Inflation Report, published Nov. 5, marked a change in tone with a message that the economy wasn’t ready for higher borrowing costs. That was after officials had spent months suggesting rates were headed higher.
The pound was little changed at $1.5123 as of 11:01 a.m. London time, having touched $1.5101 earlier, the lowest since Nov. 10. Sterling weakened 0.2 percent to 70.45 pence per euro. It has retreated from 69.83 pence on Nov. 18, the strongest level since August 6.
