Bank of Japan Leaves Rates Unchanged | Sterling Drops to Two-Year Low Against Greenback
Published July 30, 2019
The British pound touched its lowest level in over two years against the US dollar after Prime Minister Boris Johnson said a hard separation from the EU was likely. Sterling fell to a 28-month low of 1.2213 as Johnson’s cabinet prepares the ground for a “no-deal” British exit from the European Union on Oct. 31, which is likely to drive the pair lower over the coming trading sessions.
Federal Reserve officials begin their two-day meeting on monetary policy in Washington on Tuesday. Chairman Jerome Powell’s post-meeting press conference Wednesday will provide a chance to gauge the trajectory of US rates after the central bank is anticipated to ease policy with a 25 basis point cut.
The Bank of Japan left its asset purchases unchanged as well as its forward guidance for policy rates, with market participants speculating the board could still make adjustments. The central bank also trimmed its inflation and growth forecasts.