Bank of England's Carney halts pound's recovery

Mark Carney has halted the pound's recovery in its tracks.

The UK currency extended its decline versus the euro into a second day Friday, a day after Bank of England Governor said that officials may need to loosen monetary policy as they try to contain the fallout from Britain's decision to quit the European Union. His remarks also halted a two-day rally in sterling versus the dollar.

While that's a sign of a lack of confidence in the UK's post-vote economy, a weaker currency may help cushion the effect of Brexit. Central-bank action, designed to further insulate the UK, may be necessary within months, Carney said in his second televised address since the country voted to leave the trading and political bloc.