Pound firm as CBI anticipates flat growth in 2012

<p>Sterling has held its ground in forex trading this morning following the CBI’s forecast for growth.</p>

Sterling was holding its ground in forex trading this morning (November 1st) following the Confederation of British Industry's (CBI) report on growth in the UK this year and next.

The CBI stated that the economy's progress in 2012 will be flat, but a modest improvement can be anticipated in 2013-14.

Growth this year will be zero per cent, according to the organisation, which is higher than its previous forecast of -0.3 per cent, while in 2013 matters will improve to 1.4 per cent expansion.

But risks such as the ongoing eurozone debt crisis and the impact of inflation remain, with uncertainty overseas possibly holding back business investment, which is predicted to remain modest at around 3.8 per cent in 2012 and five per cent in 2013.

At 10:30 GMT, the pound had appreciated versus the dollar by 0.2 per cent to £1 buying $1.616, while trading with the euro saw sterling make 0.2 per cent gains to £1 equalling €1.248.

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