Bank Of England 's Carney Says Bank Is 'not a Targeter' Of The Exchange Rate

By Markets MarketWatch Pulse

The pound came off intraday lows against the U.S. dollar during Bank of England Governor Mark Carney's testimony before the House of Lords on Tuesday afternoon in London. The pound was buying $1.2167, strengthening after Carney said the bank is "not a targeter of the exchange rate, we're a targeter of inflation, but we are not indifferent to the level of the exchange rate." Before Carney's testimony, the pound dipped below $1.21. Sterling has slid in value after the U.K.'s vote in June to leave the European Union. Carney also said the pound has moved in recent weeks on "the market's perception of what the potential relationship will be between the United Kingdom and Europe." It is "a bit early to make those determinations because the prime minister has been very clear that we'll pursue an orderly Brexit, we'll get the best deal possible," he said. The governor also said there's been a removal "in the market's view, the prospect of an additional rate cut by the Bank of England," in recent weeks.

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