Inflation report boosts sterling

This morning’s Bank of England inflation report has given the Pound a timely boost, as Governer King took a neutral approach and did not mention further quantitative easing.

Furthermore, with the outlook still likely to give high inflation in the coming months, there may even be talk of UK interest rate rises next year, depending on the stability of the recovery. The Bank do not see a significant likelihood that we will slide back into recession.

As a result of the report, the Pound has spiked against the Euro and US Dollar, gaining over a cent against both currencies.

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