LONDON: Sterling extended its gains against a weaker dollar to 1 percent on Thursday after the Bank of England kept interest rates unchanged as expected and said rates were more likely to rise than not over the next two years.
The monetary policy committee voted unanimously to keep rates steady, dashing some speculation on the margins in markets that one or more of the nine-member committee could veer towards a rate cut.
Sterling rose to hit a day's high of $1.4401, rebounding sharply from a two-week low of $1.4053 struck on Wednesday, when the government's 2016 budget trimmed growth and inflation forecasts.
The euro was flat on the day at 78.68 pence, falling from 78.865 pence before the BoE announcement.
The minutes also showed policymakers cited the uncertainty in the run-up to the referendum on EU membership as a factor that has dragged down sterling recently.
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