LONDON (Reuters) - Sterling recovered back towards $1.35 on Thursday after Bank of England Governor Mark Carney told the BBC that he expected a rate rise over the course of the next year if there are no shocks to the economy.
The pound had slid sharply earlier in the day after the BoE kept rates on hold and cut its economic growth and inflation forecasts.
Sterling was down 0.4 percent at $1.3492 at 1515 GMT, up from around $1.3470 at a fresh four-month low before Carney’s comments.
The British currency also trimmed losses versus the euro to trade 0.7 percent lower at 88.110 pence.
Gilt futures pared gains marginally after the remarks.
Reporting by Tommy Wilkes and; editing by Dhara Ranasinghe