Sterling jumps as Bank holds fire on more QE

City A.M. Reporter

STERLING jumped against the dollar in trading today as the Bank of England decided not to restart its bond buying programme, reversing earlier losses.

Sterling hit a session high of $1.5074 against the dollar, from $1.4991 before the central bank’s announcement, which made no changes to the quantitative easing programme and kept UK interest rates on hold at 0.5 per cent.

It recovered from a 2-1/2 year low of $1.4965 touched during Asian trade.

The Bank of England has already bought £375bn worth of gilts, the equivalent of 26 per cent of national income.