The English pound rose toward its two-year high against the world's reserve currency on Tuesday in the aftermath of the Bank of England chief's speech to a New York audience, according to Bloomberg.
The monetary unit of the U.K. was moderately changed against the common currency of the European Union after economic data noted regional industrial output increased for a second-straight month in October and the trade deficit contracted.
BOE Governor Mark Carney told The Economic Club of New York on Monday that the regional economy must grow more before the institution he leads will increase interest rates.
"If you think where we would be if we didn't have forward guidance, you could argue that the market would be materially closer to attempting to price in higher rates," currency strategy head Jeremy Stretch with Canadian Imperial Bank of Commerce in London told Bloomberg on Tuesday. "What Carney will continue to do and will have to do for the foreseeable future is continue to try and pour cold water on market expectations."
Bank of England monetary policy will remain loose in the near term, Carney told his audience, according to Reuters.
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