Market News
Pound ticks up after sliding on BoE cut and gloomy forecasts - REUTERS
LONDON, Feb 7 (Reuters) - The pound regained some ground on Friday after dropping on Thursday when the Bank of England cut interest rates and halved its growth forecast for the year.
Sterling was last up 0.16% at $1.2458 on Friday, after falling 0.54% the previous day.
The pound fell as much as 1.1% after the Bank of England cut rates to 4.5% and slashed its growth forecast for this year to 0.75%, half the previous estimate.
It regained some ground when BoE Governor Andrew Bailey told Bloomberg that markets should not read too much into a switch by some policymakers to vote for deeper rate cuts.
Investors struggled to know how to react to the Bank's forecasts, which also said inflation would now peak at 3.7% this year - sharply above a previous forecast of 2.8%.
British bond yields, which move inversely to prices, initially fell but ended the day higher .
