Central Banking

George says euro is substantially undervalued

Bank of England governor Eddie George said in a speech in Paris on Tuesday,"The euro is substantially undervalued in terms of the medium-term'fundamentals', so in the same way sterling is on most calculationssubstantially overvalued against the euro...For the time being our best bet,it seems to me, is for both the Eurozone and the UK to continue to pursuemacroeconomic - both fiscal and monetary - stability in parallel, and tohope that the euro recovers, as I continue to expect that it will".