Pound sterling soars above $1.27 on hawkish view by BOE’s chief economist

The pound sterling pushed above $1.27 Wednesday, erasing losses following hawkish comments made by the Bank of England’s chief economist.

“Provided the [economic] data are still on track, I do think that beginning the process of withdrawing some of the incremental stimulus provided last August would be prudent moving into the second half of the year,” said Haldane in a speech at the National Science and Media Museum in Bradford, England.

“Far from being a cause for concern, starting the process of withdrawing some monetary policy insurance should serve as a signal of the [Monetary Policy Committee’s] confidence in the UK economy’s resilience,” he said.

The pound hit an intraday high of $1.2704 after the speech was released. Earlier, sterling fell to a two-month low below $1.26 as media reports cast doubt on the Conservative Party’s effort to reach a policy-support deal with lawmakers from Northern Ireland. Sterling bought $1.2629 late Tuesday in New York.

Source: MarketWatch