Pound Rallies Versus Euro After BOE Refrains From More Stimulus

The pound rallied from the lowest in almost two weeks against the euro after the Bank of England refrained from expanding economic stimulus that tends to devalue the currency.

U.K. government bonds rose after the central bank decided to keep its asset-purchase target at 375 billion pounds ($565 billion), as forecast by 34 of 37 analysts surveyed by Bloomberg News. Policy makers also kept the benchmark interest rate at a record-low 0.5 percent. Sterling erased a decline against the dollar after an industry report showed Britain’s services output unexpectedly accelerated in March.