Sterling tipped to fall v euro on inflation expectation
Sterling may decline further against the euro on expectations that the Bank of England may be able to bring inflation back under control with just one more rate rise next year.
The pound was trading at 67.25p early Monday, down from 67.20p late last week, while it traded at $1.9131, down from $1.9107.
Sterling began to slip against the euro following a statement from the Bank of England's rate-setting monetary policy committee (MPC) that it expected inflation to "fall back".
"Given the tone of the MPC statement we expect euro/sterling to move higher over the week," Geoff Kendrick of Westpac Banking Corp told Bloomberg.
"Market expectations for future rate hikes have pared back and we expect that to continue," he added.
The economy grew at 2.8 per cent over the quarter following August's surprise 0.25 per cent interest rate rise, the highest growth since the same period of 2004.