After falling around a cent yesterday, the GBP/USD cross has continued to lose ground this morning following Bank of England Governor Mark Carney's speech at Mansion House. For the best dollar exchange rates click here.
With the official Brexit negotiations finally getting underway yesterday, the pound started to fall across the board, as investor appetite for the UK currency weakened due to the uncertainty of Britain's exit from the European Union.
Sterling then dipped suddenly this morning, with the GBP/USD cross losing around three quarters of a cent as Mr Carney stated that the time is not right for an interest rate hike, despite three members of the Monetary Policy Committee (MPC) voting in favour of an increase last week.
GBP/USD graph
What did Carney say?
During his speech Mr Carney said that due to the mixed signals on consumer spending and business investment, and given the subdued inflationary pressures, in particular wage growth, now is not yet the time to begin increasing interest rates.
Carney also highlighted the impact of Brexit on the UK economy is still unclear, and was another reason why he would not consider a rate hike at the moment.
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