Sterling gains as UK inflation exceeds expectations

The pound sterling rose on Wednesday after UK inflation for October surpassed forecasts, reinforcing expectations of gradual interest rate cuts by the Bank of England (BoE).

Sterling climbed 0.23 per cent to $1.2711, up from $1.2688 before the data release. Against the euro, the pound gained 0.26 per cent, trading at 88.385 pence.

The higher-than-expected inflation data bolsters the view that the BoE will proceed cautiously with easing monetary policy to avoid stoking price pressures.

Attribution: Reuters

Subediting: M. S. Salama