British pound is once again facing selling pressure as special statement from the BoE did not provide any groundbreaking news and lowered expectations regarding future rate hikes.
- Policymakers said that the central bank is monitoring developments in financial markets very closely in light of the significant repricing of financial assets.
- Traders now expect 162bps rate hike in November compared to 202bps earlier.
- The MPC will not hesitate to alter interest rates as necessary to return inflation to the 2% target sustainably in the medium term, in line with its remit.
- As the monetary policy committee has stated, the impact of the government's announcements and the fall in sterling on demand and inflation will be fully assessed at the monetary policy committee's next scheduled meeting.
GBPUSD pair once again moved south and is currently testing local support at 1.0675. Source: xStation5
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