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The pound rose the most in almost two weeks against the dollar amid speculation that the Bank of England will refrain from increasing its monetary stimulus at the end of a two-day policy meeting tomorrow.
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U.K. government bonds fell, pushing 10-year yields to the highest level in six weeks, as an improved gauge of employment confidence weakened the case for the Bank of England to resume asset purchases.
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An index of U.K. house prices rose in March as transactions picked up and the outlook improved, the Royal Institution of Chartered Surveyors said.
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The pound strengthened toward a six- week high against the dollar after U.K. industrial production increased in February more than economists forecast, boosting speculation the nation will avoid a triple-dip recession.
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U.K. manufacturing rose twice as much as economists forecast in February as it rebounded from a slump during snow the previous month.
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If you’re looking for Swedish cash, don’t go to a Swedish bank.
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U.K. shop-price inflation accelerated in March and the impact of the pound’s weakness on import prices is beginning to be felt, the British Retail Consortium said.
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Euro-area inflation slowed less than economists forecast in March as steeper price increases for services offset an easing in energy costs.
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The pound strengthened from a two- week low against the dollar amid speculation the Bank of England will tomorrow refrain from extending stimulus measures that tend to devalue the currency.
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Bank of England Governor Mervyn King risks facing a third defeat in his bid to expand stimulus as officials wary of dislocating inflation expectations set aside new freedoms given by a change to their remit.