BOE Sees Risk of Further Pound Gain as Economy Recovers

Bank of England policy makers said the pound’s strength is putting downward pressure on inflation and there’s a risk of further increases as the economy recovers.

“Sterling had appreciated by another 1.5 percent during the month, and it was possible that this gradual appreciation would continue if prospects in the U.K. continued to be seen as increasingly favorable relative to those of it’s main trading partners,” the BOE said in the minutes of the Monetary Policy Committee’s March 5-6 meeting.