The British pound rose higher on Wednesday, just before the anticipated policy meeting of the Bank of England (BoE), which will begin on Thursday. Buoyed by the data presented on Tuesday, which indicated the unexpected growth of November's British consumer price to its highest level in nearly six years, the pound climbed by 0.4% to $1.1367.
Investors and analysts are expecting the Bank of England to keep interest rate on hold at 0.5%, after raising it last month. The BoE claimed in November that inflation in the country was near its peak and was expected to decrease gradually over the next two or three years to approximately a little more than 2%. Inflation data presented on Tuesday exceeded analysts’ expectations indicating an annual percentage of 3.1% -- 1% higher than the Bank’s 2% target.
Prices of oil descended on Wednesday, pinned down by a massive rise in gasoline inventories as well as the persistent growth in the United States crude supply. The international benchmark, Brent crude futures, settled down at $62.44 per barrel – 1.4% lower than their previous close. U.S. West Texas Intermediate crude futures declined by 1%, or 54 cents, closing at $56.60 per barrel.Gasoline stocks in the United States ascended to a massive 5.7 million barrels exceeding the 2.5 million-barrel expectations of traders and analysts.