Sterling Declines as Prospect for Rate Increase Wanes

The British pound decreased 0.3 percent to $1.5950 by 1:00 pm in London today as the likelihood of an interest rate increase appeared less certain.

“Expectations that there will be an interest-rate hike by the middle of the year have overshot,” Adam Cole, head of global currency strategy at Royal Bank of Canada, said by phone from London. “It’s going to be hard to build a majority in favor of a rate hike when there are still members of the monetary policy committee that think there’s a risk of a double dip. Posen seems to be the main proponent of that theory.”

Source: Bloomberg

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