Pound strengthens against the dollar

The pound sterling has been gaining strength over the period from July 2013 and as of Thursday 13th February stood at a three year high against the dollar. The rise has amounted to 13% and it now stands at $1.6673 due in to a positive run of economic data that has been seen over the last few months.

Even the Bank of England is being optimistic regarding the future economy and has recently upgraded its previous forecast of growth in the UK from 2.8% to a new figure of 3.4% for 2014.

It also appears that there will be no immediate increase in the current rate of interest, which is still being held at a record low of just 0.5% that it has been at for five years now. The chief economist at the Bank, Spencer Dale hinted that the rate was likely to increase next year, but the governor Mark Carney said the current recovery was too unbalanced to consider increasing the rate at the moment. Mr Dale commented further that any increase would not come until after spring next year and eventually a rise to around 2% by the end of the year 2016.