The pound has continued to climb slowly today, with observers growing in confidence that the interest rate will be left on hold in the short-term.

This morning the dollar stood at 1.7325 against the pound and the euro was at 1.4474 against sterling.

The encouraging news for the pound was largely derived from a steady flow of positive information this week, with the monetary policy committee (MPC) minutes revealing a lack of urgency in changes to the base rate.

In the minutes, the MPC argues that "most of the nominal indicators had been fairly strong", with the prospects for growth apparently healthy.

"In the first estimate of the expenditure components of GDP growth in the fourth quarter, private and public consumption and net trade had been more buoyant than expected," the minutes noted.

With regard to the currency markets and the interest rate the signs were that no change would be forthcoming in the near future.

"The outlook was, on balance, for continued growth near trend and inflation close to target. In the light of those considerations, for most members it seemed appropriate to leave the repo rate unchanged."

Stephen Nickell was the only member of the MPC to vote for a rate cut.