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Seems more likely they are adopting a 'won't be bullied by the international money markets' approach. That's certainly the message sent by the BoE statement regarding rate rises.
BoE has gone the other way and is planning to buy gilts at the long end of the curve (pushing 30Y yield down 4o bps). Hard to see how that doesn't put more pressure on the GBP.
NickCJ
Seems more likely they are adopting a 'won't be bullied by the international money markets' approach. That's certainly the message sent by the BoE statement regarding rate rises.
Basically 'hold the line' ride out the storm and start from ground zero. What's the worst that could happen kind of thing.
Worth remembering that despite this being a really awful strategy that we will all have to pay for. We were not a complete basket case economy before Brexit, there is some underlying value and industry in the UK. This kind of thing hamstrings the businesses that generate income but it takes a while to completely destroy them.
So, 'weak pound is good for exports' used to be a handy covering statement at times like this.
It will also stop people buying a lot of imported goods which had to happen.