Pound Rises Against Dollar Even as Economy Slows; Bonds Decline
- Sterling gains 2.5 percent on trade-weighted basis this year
- Economists forecast BOE's base rate increase in 2Q next year
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The pound advanced versus the dollar and euro, even after a report showed growth cooled off in the third quarter, as Britain remains among the world’s best-performing major economies.
Sterling increased against all except two of its 16 major peers as data was published showing the economy expanded 0.4 percent in the quarter, down from a revised growth pace of 0.5 percent in the previous three months. U.K. government bonds declined, as they did across Europe.