Speculation that the Bank of England will resist interest rates for several more months even as the European Central Bank hikes rates has pushed sterling to a six-month low against the euro. The pound was little changed at 88.98 pence per euro at 1:06 p.m. in London after reaching 89.24 pence, the weakest since Oct. 25. It was 0.2 percent stronger at $1.6288. Sterling declined yesterday to $1.6227, the weakest level since March 5.
Ã¢â‚¬Å“The BOE will sit tight until August at least,Ã¢â‚¬Â said John Hydeskov, chief analyst at Danske Bank A/S in London, who lowered his three-month pound forecast against the euro to 92 pence from 89 pence today. Ã¢â‚¬Å“IÃ¢â‚¬â„¢m still on the bearish side in terms of U.K. data and the pound will continue to slide.Ã¢â‚¬Â
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