BoE's Forbes unconvinced of need for further stimulus

Britain's economy did not need further stimulus at present, a top official from the Bank of England said.

The initial impact on activity from the referendum vote had been "less stormy" than forecast, with the economy having only slowed "modestly", Monetary Policy Committee member Kristin Forbes said.

In remarks prepared for a speech to be delivered at Imperial College, she said: "Looking forward, I am not yet convinced that additional monetary easing will be necessary to support the economy."

Nevertheless, she would not vote against continuing with the asset purchases announced at the MPC's last policy meeting.

“This is not because I have changed my assessment [but because the MPC] should not reverse a program where purchases are already underway and agreed on by the majority, barring a substantial change in economic circumstances,” Forbes explained.

Policies aimed at strengthening the financial system would help to insulate the UK from shocks, the rate-setter said.

“This will be particularly important over the next few years as the U.K. manages its transition to a new trade regime and new relationship with the European Union.”

As of 1447 BST cable was rising 0.61% and at a session high of 1.3112, even as the yield on the benchmark 10 year Gilt fell back by eight basis points to 0.722%, mirroring falls in similarly-dated Bunds.