Pound Rises Most in 3 Months as Carney Fails to Convince

The pound jumped the most in three months versus the dollar on speculation Bank of England Governor Mark Carney will struggle to hold down interest rates as the U.K. economy improves.

Sterling strengthened against all of its 16 major peers as the central bank said in its quarterly Inflation Report the U.K.’s economic recovery is gaining momentum, while reiterating its pledge to keep borrowing costs at a record low. Five-year gilts led a selloff in government bonds on skepticism Carney will be able to keep a pledge that any interest-rate increases will be “limited.”