Major Forex News
Pound Falls Against Euro as Inflation Stays Above BOE’s Target
The pound fell toward a three-week low against the euro after a report showed consumer-price inflation stayed above the Bank of England’s target at the same time as growth stagnates.
U.K. government bonds fell for the first time in four days after the Office for National Statistics said the annual inflation rate was 2.8 percent last month, unchanged from the previous month. The government in March loosened the Bank of England’s remit to give it greater flexibility to keep adding stimulus even if inflation remains above its 2 percent target.
The pound weakened 0.2 percent to 85.45 pence per euro at 10:49 a.m. London time after depreciating to 85.60 pence on April 10, the weakest level since March 25. The U.K. currency was little changed at $1.5307.
Core inflation, which excludes alcohol, tobacco, food and energy prices, accelerated to 2.4 percent in March from 2.3 percent in February. The Retail Prices Index, used as a basis for the inflation-linked bond market, was 3.3 percent, up from 3.2 percent in February.
