Pound Falls After Bank of England Says Inflation to Slow From Decade High

(Bloomberg) -- The pound fell to near its lowest in two months against the euro after the Bank of England said in its quarterly report inflation will slow next year from its fastest in a decade.

The U.K. currency also touched its lowest in four weeks versus the dollar yesterday after a report showed inflation slowed last month from the highest in a decade. Central bank policy makers estimate inflation will reach the 2 percent target in two years based on investor speculation that interest rates will rise again. Traders held onto bets the central bank will raise rates twice more this year, futures prices show.


Read more at Bloomberg Currencies News