BLBG: Pound Rises After Sentance Tells Guardian BOE May Raise Rates
By Anna Rascouet
Jan. 13 (Bloomberg) -- The pound climbed against the dollar and the euro after the Guardian cited Andrew Sentance, a policy maker at the Bank of England, as saying enough has been done to stimulate the economy and interest rates may rise.
The British currency advanced for a fourth day against its U.S. counterpart, the longest such streak since November. The newspaper said Sentance sees little risk of a double-dip recession, and the central bank will have to consider raising rates this year as the economy recovers from its worst downturn on record. A report may show industrial production in November grew 0.3 percent after stalling the month before, the median of 27 estimates in a Bloomberg survey showed.
“The interview from Sentance is reinforcing the upward bias for sterling this morning,” said Paul Robson, senior currency strategist at Royal Bank of Scotland Group Plc in London. “Manufacturing and industrial production later today will be fairly supportive.”
The pound rose 0.3 percent to $1.6218 after reaching its highest level in more than a week. Sterling also strengthened 0.4 percent to trade at 89.32 pence per euro.