Pound Dips After BoE Leaves Rate Unchanged, Cuts 2017 Growth Outlook
2017年5月11日 - 05:18PM
RTTF2
The pound slipped against its major counterparts in the European
session on Thursday, after the Bank of England kept its interest
rate unchanged and slashed the forecast for U.K. growth this year
citing a slowdown in household spending.
The BoE monetary Policy Committee, governed by Mark Carney,
voted 7-1 to maintain the bank rate at 0.25 percent. The committee
also voted unanimously to maintain the asset purchase programme at
GBP 435 billion.
"The Committee judges that, if the economy follows a path
broadly consistent with the May central projection, then monetary
policy could need to be tightened by a somewhat greater extent over
the forecast period than the very gently rising path implied by the
market yield curve underlying the May projections," the bank
said.
In the Inflation Report, the bank downgraded its 2017 growth
outlook to 1.9 percent from 2 percent, while that for 2018 was
lifted to 1.7 percent from 1.6 percent.
The bank forecast inflation to rise to 2.7 percent in the second
quarter of 2017 and then to 2.6 percent in the second quarter of
next year.
The currency has been already undermined by downbeat U.K.
industrial production and widening trade deficit in March since
early European deals.
Figures from the Office for National Statistics showed that the
UK visible trade deficit widened in March.
The visible trade deficit increased to GBP 13.44 billion from
GBP 11.44 billion in February. The expected level was GBP 11.6
billion.
Separate data showed that UK industrial production declined for
the third consecutive month in March.
Industrial output fell 0.5 percent month-on-month, following a
0.8 percent drop in February. Production was expected to decrease
0.4 percent.
Meanwhile, the pound was an excellent performer since last month
after the U.K. Prime Minister Theresa May had called for a snap
general election on June 8. The pound has rallied 1.1 percent
against the greenback, 6.17 percent against the yen and 2.02
percent against the franc since May's announcement on April 18.
The pound held steady against its major counterparts in the
Asian session, with the exception of the yen.
The pound depreciated to a 2-day low of 0.8441 against the euro,
down by 0.5 percent from Wednesday's closing value of 0.8399. The
pound is likely to find support around the 0.86 region.
Data from the European Commission showed that euro area economic
recovery is expected to continue at a largely steady pace this year
and next and economy is set to expand at a faster pace this year
than expected earlier.
In its Spring Forecast, the European Union executive raised the
Eurozone growth forecast for this year to 1.7 percent from 1.6
percent.
Reversing from an early high of 147.96 against the yen, the
pound dropped to a 2-day low of 146.74. The pound is seen finding
support around the 144.00 mark.
Data from the Ministry of Finance showed that Japan logged a
current account surplus of 2.907 trillion yen in March. That
exceeded forecasts for 2.593 trillion yen and was up from 2.813
trillion yen in February.
The pound dipped to 1.2868 against the greenback, a weekly low,
and marks a 0.5 percent slide from yesterday's closing quote of
1.2938. Continuation of the pound's downtrend may see it
challenging support around the 1.27 area.
The pound, having advanced to 1.3064 against the franc at 1:30
am ET, reversed direction and hit a 2-day low of 1.2970. At
Wednesday's close, the pair was valued at 1.3051. If the
pound-franc pair extends slide, it may target 1.28 as the next
support level.
Looking ahead, the U.S. weekly jobless claims for the week ended
May 6 and producer prices for March are set for release in the New
York session.
New York Fed President William Dudley speaks at the Interaction
with President Dudley" in New York at 10:00 am ET.
The European Central Bank executive board member Peter Praet
gives Lecture on "The Role of the ECB: Prudence and Responsibility
in Crisis Times" at 29th Heidelberg Symposium "verAntworten" in
Germany at 11:30 am ET.
At 11:35 am ET, the European Central Bank President Mario Draghi
and executive board member Benoit Coeure participate in G7 Finance
Ministers and Central Bank Governors meeting in Bari, Italy.
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