British pound whipsaws after mixed messages from the Bank of England

The British pound connected Wednesday greeting recovered losses somewhat pursuing a Financial Times study that said the Bank of England is privately signaling a willingness to widen its exigency bond-buying program.

The report, which cited anonymous sources, came connected the heels of comments by BOE Governor Andrew Bailey who said the central slope would extremity the rescue programme connected Friday arsenic planned.

Speaking astatine an lawsuit organized by the Institute of International Finance successful Washington, D.C., precocious Tuesday, Bailey said that "part of the essence, I think, of a fiscal stableness involution is that it is intelligibly temporary."

The Bank of England did not instantly respond to CNBC's petition for remark connected the FT's study extracurricular of bureau hours.

The pound fell arsenic debased arsenic $1.0922 successful Asia's greeting commercialized earlier popping to $1.106 aft the FT study was published. It was trading astatine $1.0988 by 6 a.m. London clip Wednesday.

The Pensions and Lifetime Savings Association called for an hold to the BOE's intervention, which is owed to extremity connected Oct. 14.

"A cardinal interest of pension funds since the Bank of England's involution has been that the play of purchasing should not beryllium ended excessively soon, for example, galore consciousness it should beryllium extended to the adjacent fiscal lawsuit connected 31 October and perchance beyond," the PLSA said successful a connection Tuesday.

If enslaved purchasing is stopped, "additional measures should beryllium enactment successful spot to negociate marketplace volatility," it added.

But Bailey said precocious Tuesday that the BOE does not mean to proceed buying bonds to stabilize the market.

"We person announced that we volition beryllium retired by the extremity of this week. We deliberation the rebalancing indispensable beryllium done," helium said.

"And my connection to the funds progressive and each the firms progressive managing those funds: You've got 3 days near now. You've got to get this done."

— CNBC's Elliot Smith and Jenni Reid contributed to this report.