Sentence announcement boosted the pound

By IBTimes Staff Reporter | January 13 2010 1:09 PM

Andrew Sentence, BoE policy maker, said the BoE should halt its 200-billion-pounds stimulus and increases the cost of borrowing this year as the economy is showing strong recovery signs that are providing clues the economy will emerge from the worst recession since WWII in the fourth quarter.

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Sentence mentioned that the bank should not add to the 200 billion pounds that will end in February as inflation rebounded to 1.9% and may exceed the targeted 2% in the first months of the New Year.

After the announcement, the pound rallied against majors especially the dollar where it made the longest stretch of gains since November.