Wednesday, September 30, 2009
BoE pulls back from deposit rate decision
Sterling rallied sharply on foreign exchange markets yesterday as the Bank of England emphasised that it had no immediate plans to change the rate that it pays to commercial banks on sums deposited with it overnight. Economists attending a â€œteach-inâ€ at the Bank yesterday were said to have received indications that no such move was imminent, with officials suggesting the Bank was â€œsome wayâ€ from deciding on any change. The economists are also understood to have been told at the meeting that the Bank was unhappy about the way in which the market had reacted to comments made by Mr King to The Journal, the Newcastle title, last week, which were interpreted by some as an attempt to talk down the pound.