Brexit continue to press the pound; BoE expected to take action – Newscasts Televisa

LONDON, July. 5, 2016.- The Bank of England will probably wait until August to take monetary policy measures that reduce the economic impact of the decision of the UK to leave the European Union, but the pound will remain under strong pressure in the coming months, they said Tuesday Reuters.

the governor of the BoE (by its acronym in English), Mark Carney, has said the economy faces a slowdown following the outcome of the British referendum on EU membership and announced that the central bank is willing to take steps to encourage lending in the country.

a survey showed that the pound, which on Tuesday to a new 31-year low against the dollar sank probably will weaken another 3 percent, which would add to the low 12 percent already accumulated since the referendum on June 23.

the survey of 60 currency strategists expected the bewildered currency British continue to fall and will fall to $ 1.27 by the end of the year, down more than 4 percent from Monday’s close at $ 1.33.

in general, experts expect a slight recovery to $ 1.29 in the course of a year, quite far from the $ 1.50 in which the pound traded before the vote in which a slight majority of the British decided to exit the EU. Against the euro, the performance would be similarly weak.

After spending much of his first three years in the BoE trying to provide guidance on the next rate hike, Carney suggested last week that is likely to Central bank to issue more stimuli during the summer, as the result of the referendum raised fears of a recession.

However, it is not clear how much help a further rate cut, which are already at a minimum record 0.50 percent. Almost two thirds of 52 economists surveyed for a second poll Reuters expect stable rates after BOE meeting two days ending on July 14.

The Bank of England will release new economic projections 4 August and typically launches monetary policy measures along with their quarterly estimates. At the beginning of next month, the BoE is expected to have more clear what impact the outcome of the referendum on the economy.

TFO