Due to high inflationary pressures, currency traders had assumed that the Bank of England would be raising rates this year. BOE governor Carney threw cold water on that assumption during an interview with the BBC:
The governor of the Bank of England has said that an interest rate rise is “likely” this year, but any increases will be gradual.
Mark Carney said major decisions had to be taken on Brexit, including on the detail of the implementation period and the shape of a final deal.