The Pound Dollar exchange rate is 0.073% lower on the day with 1 GBP = 1.6337 USD. The Pound Euro exchange rate is 0.073% lower with 1 GBP = 1.1318 EUR. The Pound Australian Dollar exchange rate is 0.216% lower with 1 GBP = 1.5506 AUD. "The British Pound has bounced back against the Euro this morning from a low of 1.1290 in early trading, after Bank of England policy maker Andrew Sentance said that he voted for a 50 basis point increase for a second time this month," says a foreign exchange note from analyst Adam Solomon at Tor Fx. Sentence also said that money markets are anticipating that UK interest rates will reach 2% next year, but Sentance’s term as a BoE policy maker comes to an end on May 31st and he has one opportunity remaining to push for an increase in borrowing costs next month. A report from the Office of National Statistics tomorrow is expected to show that UK inflation remained at the highest level since November 2008 and Sentance warned that the MPC must keep control of consumer prices. The Bank’s credibility has also been called into question, with inflation above the government’s upper limit of 3% for the past year. Policy makers have been waiting for the first quarter growth figures to make sure the economic recovery will sustain itself before committing to a rate increase. "The Pound has remained in the ascendancy against the vulnerable U.S Dollar, after the International Monetary Fund lowered its forecast for U.S economic growth," says Solomon.

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