Sterling makes ‘broad gains’ after MPC announcement

<p>Interest rates have been held in the UK once more.</p>

Sterling rebounded in the UK following the announcement from the Bank of England that it will be holding the base rate of interest for another month.

Interest rates in the UK have been at 0.5 per cent – a record low for the country – since March 2009 and a change appears no closer to being implemented.

According to Andy Scott, premier account manager at foreign currency exchange brokers HiFX, sterling made "broad gains" in the hours after the news from the Bank of England.

"The pound rose by around 0.5 per cent against both the euro and the US dollar following the announcement," he said.

Mr Scott added it is possible leader of the Bank of England Mervyn King has lost authority over the committee after announcing he is stepping down during 2013.

Sterling is currently worth $1.51, with Jason Gaywood, director of corporate premier services at HiFX, predicting the pound is due for a resurgence.

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