📝 Bar Is High For Bank Of England FX Intervention: HSBC

The BoE has been hands-off since 1992, and it does not have the same reserve firepower as other central banks. The bar is high for intervention. Despite GBP’s recent decline, there have also been periods when the drop has been even faster, but the central bank did not intervene. The longer the uncertainty in the UK continues, then the market will likely look for opportunities to sell the pound. The currency has already been facing multiple pressures over the past year, but the recent fiscal developments are pouring fuel on the fire. - HSBC