Sterling hits three-week high against the euro

Sterling advanced yesterday approaching its strongest level in three weeks against the euro, after Bank of England policymakers said China’s slowdown hasn’t shaken their conviction that the time for the first UK interest-rate increase since 2007 is coming nearer.

Sterling gained versus all except two of its 16 major peers as Bank of England officials said in minutes of their policy meeting that the UK economy’s prospects are positive.

The nine-member Monetary Policy Committee voted 8-1 this week to keep its benchmark interest rate at a record-low 0.5%, with Ian McCafferty again the lone dissenter. British government bonds halted a two-day decline, as a result.