The pound erased gains in early trading by falling almost a cent against the dollar, as investors bet that austerity efforts will mean the Bank of England will have to keep rates at their record 0.5pc low for some time yet. The pound closed roughly flat at $1.6350. Chancellor George Osborne said: “We would like the economy to grow even further, we’d like more jobs to be created, but the rock upon which the stability of the British economy rests at the moment is our credible fiscal plan.”