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Sterling edges higher as economic outlook darkens rate view
Sterling reached more than two-week highs on Tuesday, but was confined in recent trading ranges as analysts assessed the prospect of a 50 bps rate hike by the Bank of England against the backdrop of a worsening economic outlook.The BoE will likely shy away from a bigger interest rate rise in August and stick with the more modest 25 basis point increases it has been delivering, but it is a close call, a Reuters poll of economists found. “BoE is priced for tightening like the Fed but with a far worse economic outlook than the United States,” said Francesco Pesole, a strategist at ING Bank in London.“The worsening ... (full story)