LONDON: Sterling fell on Thursday after the Bank of England pointed to more barriers to economic growth and a recovery of inflation next year, again cooling expectations for the timing of a first rise in interest rates.
The Bank's rate-setters focused on a renewed fall in global oil prices and slower wage growth at home as they voted 8-1 again to keep interest rates at a record low of 0.5 percent.
It added, however, that softer spending cuts announced last month by finance minister George Osborne might help 2016 growth relative to previous forecasts.
Sterling fell to $1.5147 from $1.5178 before the publication of the minutes and rate decision. It also trimmed the day's gains against the euro, dipping to 72.29 pence per euro from 72.14 beforehand.
British gilt futures jumped around 10 ticks after the decision, but was still down 36 ticks on the day.
The FTSE 100 index pared some of its earlier losses to be down 0.4 percent by 1202 GMT.
Comments
Comments are closed for this article.