Pound Rises as Miles Says U.K. Economy Will Improve

The pound strengthened from a five-month low against the dollar after Bank of England policy maker David Miles said U.K. economic growth is likely to improve to between 2 percent and 2.5 percent a year within 18 months.

The U.K. currency rose for the first time in four days versus the euro before a report tomorrow that economists said will show U.K. mortgage approvals increased in December. Miles, who called for more quantitative easing at this month’s policy meeting, was quoted by the Independent newspaper as saying a pickup in growth may not substantially increase inflation. U.K. government bonds rose as the Debt Management Office sold 4 billion pounds ($6.3 billion) of debt maturing in 2044.