//
That is the suggestion of Travelex's Mark Bolsom, who cited Mr Sentance's assurances that quantitative easing will not be further extended as a reason for confidence.
The firm observed that the pound had reached a five-month high against the euro yesterday (January 28th).
However, Mr Bolsom warned that the potential for a double-dip recession remains strong, with the economy having grown only marginally despite the high lels of stimulus from the Bank and the government.
"What will happen to growth after the stimulus is withdrawn? I wouldn't go as far to say return to recession is inevitable, but I would say it is a strong possibility," he remarked.
Earlier this week, Investec Securities predicted that the pound would rise in Forex trading if the Conservative Party wins a mandate to control public finances at the upcoming general election.
Posted by Clive Arneil
