Pound Rises to 2-Week High as Osborne Keeps BOE Inflation Target

The pound rose to a two-week high versus the dollar as Chancellor of the Exchequer George Osborne said the government will keep the Bank of England’s 2 percent inflation target, damping bets he would ease it to spur growth.

The U.K. currency gained versus most of its 16 major counterparts as minutes of the Bank of England’s March policy meeting showed some policy makers saying further bond purchases may cause an “unwarranted depreciation of sterling.” Osborne said in parliament he would allow officials greater flexibility in meeting the central bank’s inflation mandate and may permit the provision of forward guidance on interest rates. Government bonds pared a decline.