A change of fortunes this week with the British pound gaining ground against the single currency as the week progressed.
Bank of England Governor Mark Carney was keen to share his view on the UK’s current position and future prospects during his Economic Affairs Committee speech. He made strong reference to the negative economic implications should the outcome of the UK’s EU referendum vote be Brexit.
Carney indicated that the Bank of England still has room for conventional monetary measures, which may be called upon should UK economic conditions flounder after a Brexit outcome, although there is no appetite at all to dip into negative rates territory within the Bank of England’s Monetary Policy Committee. So the message is clear, interest rates in the UK could be tweaked below the current 0.5% level. No doubt opinion poll releases in the run up to the poll date of the 23rd of June will hold sway for sterling.