Sterling falls after Bank of England report

The pound fell after the Bank of England’s latest forecasts gave few signs of an early interest rate rise.

The Bank upgraded its growth forecast for this year to 2%, and – as expected – kept interest rates on hold at 0.25%.

It said some of its rate-setters had “moved a little closer” to their limits of tolerating inflation overshooting the Bank’s 2% target.

However, markets felt there was no real change to the Bank’s stance, and the pound fell sharply.

Against the dollar, sterling fell by 0.8% to $1.2562, while it dropped about 1 euro cents, or 1.0%, against the euro to 1.1639 euros.

Read full article here

Source: BBC News Retrieved 3 February 2017, from http://www.bbc.co.uk/news/business-38838575