The pound saw a boost yesterday after comments from the BoE hinted at an early end to its bond-buying stimulus programme and a rise in interest rates. Sterling had been on track to reach yet another 14-week high against the euro but has lost some of that strength this morning.
Speaking yesterday, Bank of England policymaker Michael Saunders advised the Bank to think about winding down its quantitative easing measures after inflation was rising “a bit more than expected”.
He warned that without action, inflation could remain above the Bank’s target of 2% for years to come.
