Sterling climbs as MPC members back Carney's forward guidance

Sterling rose against other major currencies this morning after the minutes from Monetary Policy Committee (MPC) meeting showed most members backed Mark Carney's forward guidance policy on interest rates.

The pound was up 0.4% against the dollar and 0.3% against the euro shortly after the announcement, while the yield on 10-year gilts rose 3.2 basis points to 2.63%. The currency strengthened after it emerged eight out of the nine MPC members voted in favour of the policy shake-up, which last week saw the Governor indicate to the market how long he intends to hold the base rate at a record low. Carney announced rates will not rise until the unemployment rate falls back below the 7% mark. It is currently near 8%. The minutes of the meeting held on 31 July and 1 August also show the co...