British Pound Jumps to $2 for First Time Since 1992 as Inflation Quickens

(Bloomberg) -- The pound rallied to $2 for the first time since September 1992 as traders wagered the Bank of England will keep raising interest rates to cool inflation fed by house prices, wage demands and consumer spending.

The U.K. pound reached the highest since September 1992, when billionaire investor George Soros and other speculators drove the currency out of the European system of linked exchange rates. Britain's economy, Europe's second-biggest, has shown few signs of cooling after three rate increases since early August. Another quarter-point move would take borrowing costs to 5.5 percent, the highest among the Group of Seven major economies.


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