Pound Tanks As BOE's Carney Indicates Further Easing To Come

By Markets MarketWatch Pulse

The British pound plummeted against the dollar on Thursday after Bank of England Gov. Mark Carney indicated the central bank will likely further ease monetary policy to combat an expected economic slowdown. The British pound tumbled to $1.3321 after the release of Carney's prepared remarks -- a sharp reversal from a session high of $1.3497. Carney struck a somber tone with his remarks, saying that uncertainty surrounding the U.K.'s plan to leave the European Union will likely weigh on economic growth, requiring the central bank to take action. Many economists expect the BOE to cut rates soon to combat tightening financial conditions in the wake of the Brexit vote.

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