LONDON (Reuters) – The pound extended losses on Thursday after the Bank of England raised interest rates from crisis era lows but was cautious about any further tightening with an uncertain Brexit on the horizon.
Bank of England Governor, Mark Carney, speaks during the central bank’s quarterly Inflation Report press conference in London, Britain August 2, 2018. Daniel Leal-Olivas/Pool via Reuters
A broadly rallying dollar also hit the pound.
Sterling fell as much as 0.8 percent to $1.3017, down from around $1.31 before Governor Mark Carney gave his post-rate decision news conference.
The pound also fell against the euro from an earlier flat position. It dropped 0.4 percent at 89.150 pence per euro as Carney spoke.
Reporting by Tommy Wilkes and Tom Finn; Editing by John Stonestreet and Alison Williams