Sterling's strength not sustainable, says Eddie George

The recent strength of sterling is not likely to be sustained in the long run, Mr Edward George, the governor of the Bank of England, said in a conference Wyoming yesterday. "We've got an exchange rate that is clearly stronger than we think could be sustained in the longer term," Mr George told a panel of top economists gathered for a three-day symposium sponsored by the Federal Reserve Bank of Kansas City.

Mr George said the strength of sterling in international foreign exchange markets was due to factors "beyond our control". "I think you cannot find the perfect solution to that, so you actually have to hold on until that situation resolves itself," Mr George said.

"But I think in doing that you have to focus on the main objective, which is maintaining long-term price stability and the sustainability and growth of the economy," he added.

Mr George was speaking at the 21th annual economic symposium on public issues sponsored by the Kansas City Fed.

The conference chose the topic of maintaining financial stability in a global economy as its core theme this year.