The Bank of England has lowered its growth forecast for 2015 to 2.5%. This is not extremely surprising given the slower growth rate in Q1. Perhaps more importantly, the institution led by Mark Carney bases its forecasts on an initial rate hike in mid 2016 – far off into the future. They also stress that hikes will be very gradual.
GBP/USD slips under 1.57. Update: after the initial fall, we are seeing some signs of recovery in cable.
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