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Pound jumps for 2nd day.
Published on 16.03.2017 14:59

The British pound has continued to push higher today after the last hurdle was cleared to enact Brexit, as well as signs that the Bank of England’s board members are divided over monetary policy.

At 12.43pm (GMT) the British currency was trading at $!.2357 up from $1.2293 in yesterday’s trading.

The Queen has now granted royal assent to the article 50 bill, paving the way for British Prime minister Theresa May to trigger article 50 and start Brexit negotiations to leave the EU.

As sigh of relief swept over the financial markets after the end of a brutal Brexit campaign, and many are glad that the process is over so the UK economy can get back to business,

"Brexit will allow us to begin the process of national renewal, enabling us to build a robust economy, more cohesive communities and to make politicians more accountable to the public” noted Labour MP Gisela Stuart,

"In the weeks and months ahead, I would urge politicians from all parties to work together to help ensure we make the most of the opportunities that leaving the EU will provide." she added.

Also, boosting the pound today was a shock split in the Bank of England’s policy making team, with Bank of England policymaker Kristen Forbes unexpectedly voting for a rise in interest rates, making her the odd one out.

This marks the first time in nearly a year where the banks board members have not reached a unanimous decision, and some predict that in the nearest future some other members may call for a tightening of monetary policy,

"There were signs that other members may be close to voting for a tightening in monetary policy, given that 'it would take relatively little further upside news on the prospects for activity or inflation for them to consider that a more immediate reduction in policy support might be warranted'. said Ruth Gregory, UK economist at Capital Economics,

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Andrew Masters

Analyst

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