Bloomberg News

Pound Is Little Changed Versus Dollar Before BOE Policy Decision

January 10, 2013

The pound was little changed against the dollar before Bank of England policy makers announce the result of their monthly meeting.

Sterling was also little changed versus the euro as the National Statistician said the U.K. should maintain its current approach to calculating its retail price index. The Monetary Policy Committee will keep the benchmark interest rate at a record-low 0.5 percent and the asset-purchase target at 375 billion pounds ($601 billion), separate Bloomberg News surveys show, before the decision is announced at noon in London.

The pound traded at $1.6027 at 7:54 a.m. London time. It fell to $1.5993 yesterday, the lowest since Nov. 30. Sterling was at 81.54 pence per euro, after depreciating to 81.63 pence yesterday, the weakest since Dec. 31.

The statistics office will develop a new inflation index known as RPIJ to address an issue with the measurement of clothing prices in the RPI, the Office for National Statistics said in London today.

The pound has fallen 0.6 percent in the past week, the second-worst performer of 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The yen dropped 1.4 percent, while dollar and the euro were little changed.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net.

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net.


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