Bank of England Deputy Governor Ben Broadbent said on Thursday that it is possible that the BoE's balance sheet could decline even as the bank rate falls, according to Reuters. The Monetary Policy Committee (MPC) does not intend quantitative tightening to be an active policy instrument, Broadbent added, noting that, instead, the bank rate would be.

Market Reaction

GBP has not reacted to Broadbent's comments with focus much more on geopolitics right now. GBP/USD was last trading 1.5% lower at annual lows underneath the 1.3350 level.