Sterling hits 11-month low, traders push back UK rate hike expectations

LONDON: Sterling fell to an 11-month low against the dollar on Tuesday, as traders pushed back expectations of a rise in UK interest rates well into 2015 after inflation slowed more than expected in September.

Sterling fell 0.9 percent to $1.5940, its lowest since November last year.

Sterling overnight interbank average rates - the short-term interest rates which form the basis of lending costs to the wider economy - were pricing in a slight chance of a rate increase in eight months, compared with six months before the data was released.