Bloomberg News

Pound Extends Drop Versus Dollar After BOE Inflation Report

November 16, 2011

Nov. 16 (Bloomberg) -- The pound extended a decilne versus the dollar after the Bank of England said it expects inflation to fall sharply over the next two years.

Sterling was 0.4 percent weaker against the U.S. currency at 10:34 a.m. in London. It depreciated 0.2 percent to 85.77 pence per euro.

The central bank said the U.K. growth outlook has worsened and inflation is more likely to be below its 2 percent target than above it in two years, indicating policy makers will have to add to their current round of stimulus.

To contact the editor responsible for this story: Mark McCord at mmccord2@bloomberg.net


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