Home Featured GBP/USD – Pound extends gains, Bailey testifies about banking crisis

GBP/USD – Pound extends gains, Bailey testifies about banking crisis



For the second consecutive day, the British pound has risen. GBP/USD trades at 123.37 in North American session. That’s up 0.40%. BoE Governor Bailey stated earlier today that the UK’s banking system is safe. The Federal Reserve will decide on Wednesday what its interest rate should be.

Bailey assures lawmakers

BoE Governor Bailey testified before parliament’s Treasury Committee against the backdrop of the collapse of banks in the US and Switzerland. The banking crisis is now the most talked about topic. Senior government officials and central bankers around the world are insisting that the banking system remains safe. The BoE sent a cautious but reassuring message to lawmakers. He claimed that UK banks hadn’t been subject to any stress following the collapse of Credit Suisse and Silicon Valley Bank. Bailey stated that the central bank was alerted to the banking crisis, and that there was evidence that credit conditions were tighter. On Monday, Bailey acknowledged that the “path of inflation would not be entirely smooth” but reiterated that he expected inflation to fall sharply in the summer.

ECB President Lagarde suggested last week that the banking crisis could curb demand and inflation and do some of the ECB’s work. Bailey…

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