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Pound drops on Carney rate comments

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The pound has fallen after the Bank of England governor said he did not favour an interest rate rise at the moment.Sterling was down 0.6% against the dollar at $1.2667, having slid after Mark Carney made the comments in his Mansion House speech.Last week, the Bank of England held interest rates at 0.25%, but three of the eight Bank policymakers voted for a rate rise.However, Mr Carney said he thought a rate rise now would be premature.He said uncertainty over the direction of the economy and “anaemic” wage growth meant that “now is not yet the time to begin” increasing rates.The pound also fell against the euro, dropping 0.6% to 1.1360 euros.On the stock market, the FTSE 100 had risen during the morning, but by lunchtime the rally had fizzled out to leave the index down 3.19 points at 7,520.62.Mining companies saw some of the biggest falls – with Glencore and BHP Billiton both down by about 2% – after copper and iron ore prices fell.Shares in plumbing services firm Wolseley reversed early losses to stand 0.5% higher after the company reported an increase in third-quarter profits.The firm – which owns Plumb Center – reported a 9.5% rise in trading profits to £254m in the three months to 30 April. In the FTSE 250 index, Domino’s Pizza Group fell 6.5% after Investec gave the company a “sell” rating.
Source: SKY News Feed