Sterling tumbles on Bank of England rates signal

Sterling tumbled versus the euro and reversed an advance against the dollar after the Bank of England yesterday signalled there is scope to keep interest rates at a record low as inflation weakness persists.

“The pound is trading lower on the Bank of England headlines,” said Neil Jones, London-based head of hedge-fund sales at Mizuho Bank.

“Inflation-target expectations have been pushed back,” but “I do expect the Bank of England to remain more hawkish relative to most other central banks which should bode well for sterling performance in the longer term,” he wrote.