FX Week

BoE cut may hint at lower sterling

“The fall in the sterling effective exchange rate since the start of this year should help underpin growth, but in recent weeks that fall has been partly reversed, reducing the prospective impact on inflation,” the BoE said in explaining its decision – and analysts seized on the statement as an indication that the bank is now more willing to accommodate a falling exchange rate. “This is probably a reflection of renewed concerns on the global growth background – specifically Europe,” said Ada