Pound Rises on Speculation BOE Will Refrain From Adding Stimulus
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The pound strengthened from a two-week low against the dollar amid speculation the Bank of England will tomorrow refrain from extending stimulus measures that tend to devalue the currency.
Sterling rose versus most of its major counterparts as a report showed U.K. shop-price inflation accelerated last month. Central-bank policy makers will maintain their asset-purchase target at 375 billion pounds ($568 billion), according to economists surveyed by Bloomberg. Minutes of the last two meetings showed three members of the nine-member Monetary Policy Committee, including Governor Mervyn King, voted to boost so-called quantitative easing. Gilts advanced.