Sterling surges on signs of shift in BOE stance

London

STERLING surged over a full US cent on Thursday following signs of a shift in the Bank of England's (BOE) stance on keeping UK interest rates at record lows, while the Federal Reserve's sticking to expectations of further rises lifted the US dollar.

Two more policymakers at the BOE joined existing rate rise advocate Kristin Forbes in calling for a reversal to the Bank's cut to interest rates last August, sending the pound as high as US$1.2795 in the minutes following the Bank's decision, which left rates unchanged.