MNI BRIEF: BOE Not Targeting Level Of Sterling Through Policy

The Bank of England does not target the exchange rate when setting monetary policy, Governor Andrew Bailey said Wednesday, noting that the currency was treated as an input into the overall economic and policy mix.

The weaker exchange rate has both positive and negative effects on the economy Bailey said, but he did note the decline in recent months had not been a surprise.

Recently, MPC member Catherine Mann told an MNI Market News event that weaker sterling would likely further push inflation higher. Grant Fitzner, chief economist at the Office for National Statistics told MNI the weaker pound in recent weeks was yet to feed through to the inflation data.