Pound Falls to 2 1/2-Year Low Versus Dollar Before BOE Decision

The pound dropped to its weakest level in more than 2 1/2 years versus the dollar amid speculation the Bank of England will announce more stimulus to boost the economy, a policy that typically debases a currency.

Sterling weakened for a third day against the euro after the U.K. Treasury said Chancellor of the Exchequer George Osborne will review the central bank’s inflation target before presenting the annual budget on March 20. While the median estimate of 39 economists in a Bloomberg News survey was for the Monetary Policy Committee to hold its asset-purchase target at 375 billion pounds ($562 billion), 10 of the analysts predicted an expansion. Gilts were little changed.