Pound Rises Before Carney Testimony, Rate Decision; Gilts
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The pound rallied from near a 15-month low versus the euro amid speculation it had weakened too far on bets the next Bank of England governor Mark Carney would boost efforts to spur the economy when he takes over in July.
Britain’s currency strengthened against all but two of its 16 major counterparts before Carney testifies to U.K. lawmakers in London tomorrow. Economists predict the central bank will leave its benchmark interest rate at a record-low 0.5 percent and maintain its asset-purchase target at 375 billion pounds ($588 billion) when it meets the same day. Gilts rose after a report showed house prices declined in January.