Pound climbs amid BOE official's growth prediction

Posted On: January 29, 2013

Predictions by an official with the central bank of England that the local economy will expand as much as 2.5 percent during the next 18 months spurred the English pound from its five-month lows against the U.S. dollar on Tuesday, according to Bloomberg.

The monetary unit of the U.K. achieved gains for the first time in four days against the shared currency of the European Union. Policy maker David Miles with the Bank of England said regional economic growth is forecast to climb at minimum 2 percent.

"Given Miles was the only Monetary Policy Committee member to vote for an expansion of stimulus this month, his comments are taken by the market as being hawkish," senior currency strategist Jane Foley with Rabobank International in London told the news source on Tuesday. "That helped to support the pound as some people may have covered short positions on that."

Last month saw gains for mortgage approvals in the U.K., according to predictions of economists regarding a report set to be released on Wednesday.

Regulators with the Bank of England are increasingly driving toward a chasm regarding the measurement of currency risk, The Telegraph reports
 

Category: Industry News

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