BLBG:Pound Pares Drop Against Dollar After Bank Of England Forecasts
The pound pared its decline against the dollar after the Bank of England cut its growth forecast and said inflation will be below its target in two years.
Sterling was 0.1 percent lower at $1.5605 at 10:34 a.m. London time, after dropping as much as 0.3 percent earlier. Britain’s currency was little changed at 79.30 pence per euro.
U.K. 10-year gilts extended their advance, with the yield falling six basis points to 1.54 percent.
Short-sterling futures stayed higher, with the implied yield on the contract expiring in September 2013 two basis points lower at 0.54 percent.
To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
