The pound rose against the dollar and euro after a survey showed U.K. consumer confidence in February rose from the lowest level in at least four years. The currency also advanced on speculation the Bank of England may bolster economic growth by cutting its benchmark rate to a record low tomorrow and signaling its ready to buy government bonds as part of a quantitative easing policy. An index of U.K. sentiment increased to 43 last month, from 41 in January, which was the worst result since data began in 2004, Nationwide Building Society said today. “Longer term, with policy easing put in place and quantitative easing in practice, that will bolster expectations for an economic recovery,” said Daragh Maher, a London-based foreign-exchange strategist at Calyon, the investment-banking arm of Credit Agricole SA. “It’s still early, but the ingredients may be falling into place for a recovery later this year.” The pound climbed 0.7 percent to $1.4147 by 2:37 p.m. in London, from $1.4050 yesterday. It strengthened 0.5 percent to 88.95 pence per euro, from 89.41 pence. The Bank of England will lower the main interest rate by a half-percentage point tomorrow to the lowest level since the bank was founded in 1694, according to the median forecast of 60 economists surveyed by Bloomberg News. To contact the reporter on this story: Kim-Mai Cutler in London at kcutler@bloomberg.net

Source