The Bank of England said in a special evening statement on September 26 that it is “very closely monitoring” market movements after a “significant price revision” and is “not hesitating” to adjust its base rate to the extent necessary.
At the same time, the British central bank explicitly referred to the fact that it was not preparing for an unscheduled interest rate meeting.
During the day on Monday, on a wave of pound weakness unprecedented in decades, rumours circulated in the market about the possibility of an extraordinary hike in the base rate.
As a prelude to this, in early trading on Monday the pound was close to $1,030 per pound in Asia and then in London trading, which was almost 5% lower than Friday’s levels.
Such a low exchange rate for the British pound has not been seen since Britain switched to the decimal system in the monetary account more than half a century ago in February 1971.
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