Sterling hovers at three-month low ahead of Bank of England meet

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Sterling hovers at three-month low ahead of Bank of England meet
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LONDON, Sept 19 - The pound held near three-month lows on Tuesday, ahead of a slew of central bank decisions, including that of the Bank of England later this week, which is expected to yield a final rate rise in the current cycle.

The BoE meets on Thursday and money markets show traders widely expect to see one final quarter-point hike to 5.50%, but no realistic prospect of a rate cut until next summer. Consumer inflation in the United States has fallen to 3.7% from last June's 9.1% rate, while in the euro zone, inflation is running at 5.3%, almost half last October's 10.7% reading.

Against that backdrop, a Reuters poll of economists last week showed a significant minority believe the BoE has room to raise rates at least once more this year after September.

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