2014.11.1823:06:13UTC+00Sterling declines to lowest in month on dampened BOE rate bets

The British pound dropped to the least in a month against the euro as a report showed the UK inflation rate stayed close to a five-year trough, boosting speculation the Bank of England would defer interest rate hike. 

Sterling declined 0.7% to 80.15 pence per euro at 4:20 p.m. (London time) following it touched 80.18 pence, the lowest since October 16. Against the US dollar, the currency was slightly changed at $1.5640. Pound hit $1.5593 on November 14, the weakest since September 6, 2013.

“Inflation may have picked up but it is still low and there are plenty of things that could push it lower,” said Kathleen Brooks, European Research Director at Forex.com. 

Brooks added they were bearish on the pound and the central bank would possibly postpone increasing rates until late 2015.

Meanwhile, the BOE would publish the minutes of its November policy meeting tomorrow.