Pound Falls Before Bank of England Publishes Growth Forecasts
The pound weakened on speculation the Bank of England will cut its forecasts for growth and consumer prices when it releases its quarterly Inflation Report today.
Sterling fell against all except two of its 16 major counterparts. The central bank, which kept its bond-purchase target at 375 billion pounds ($584 billion) and its benchmark interest rate at a record-low 0.5 percent last week, will release its new forecasts at 10:30 a.m. London time. All 16 economists in a Bloomberg News survey say the Bank of England will lower its 2012 economic outlook, while all but one see a reduction in the 2013 projections.
The pound fell 0.2 percent to $1.5587 at 9:08 a.m. London time. The U.K. currency weakened 0.5 percent to 122.19 yen, and was little changed at 79.40 pence per euro.
Sterling has dropped 3 percent in the past three months, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-nation currencies. The dollar rose 1 percent in the period, and the yen gained 3.1 percent.
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