Pound slip

All this matters less for sterling than Brexit negotiations, leaving GBPUSD increasingly range bound until we get a clearer steer on what sort of trading arrangement Britain and the EU is to strike. That could be a long time coming."

Cable fell through the $1.27 handle to touch on $1.267 with investors seeing the tone as indicative of the Bank’s desire to leave rates on hold for as long as it can.

Carney's dovishness should "hardly be a surprise, given his given his record of favouring looser monetary policy, but it does reiterate the MPC’s preference for looking through the current high levels of inflation for the time being".