GBP/USD Settles Around 1.55 After BOE Inflation Forecast

The pound approached a seven-week high against the dollar after the Bank of England said yesterday U.K. inflation probably won’t slow to its 2 percent target until around the end of 2015.

Sterling was about 0.3 percent from its strongest level in a month versus the euro. The Monetary Policy Committee led by Governor Mark Carney raised its growth forecasts in its Inflation Report and pledged to keep its stance accommodative until the jobless rate falls to 7 percent. The Debt Management Office is scheduled to sell 1.3 billion pounds ($2 billion) of inflation-linked bonds due in 2034 today.

The pound gained 0.2 percent to $1.5515 at 7:42 a.m. London time, after rising to $1.5531 yesterday, the most since June 21. Sterling appreciated 0.1 percent to 85.99 pence per euro after reaching 85.79 pence yesterday, the strongest since July 10.


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