UK pound drops as central bank chief tempers rate hike talk

LONDON – The British pound is falling from post-Brexit highs after the Bank of England’s governor tempered market expectations of another interest rate hike next month.

In comments to the BBC on Thursday, Mark Carney noted some recent soft economic data, and reiterated that any interest rate rises would be gradual.

He said: “I don’t want to get too focused on the precise timing — it is more about the general path.”

For investors, that was a clear hint that a quarter-point rate increase to 0.75 per cent at the next policy meeting on May 10 may not be guaranteed. The pound, which this week was close to the $1.44 level for the first time since the June 2016 Brexit, is down 0.2 per cent Friday at $1.4065.