Friday, 15 September 2017

Pound hits $1.36 as UK interest rate rise expectations grow

The pound has hit heights against the dollar not seen since its post-Brexit vote bashing after a Bank of England policymaker added his voice to support for an interest rate rise.
Gertjan Vlieghe said he supported the view, expressed by a majority of the nine-member monetary policy committee (MPC) at Thursday's meeting, that rates could rise in the "coming months" to help keep a lid on inflation should it continue to grow as expected.

In a speech to a conference in London, the economist said: "There remains a risk that, at some stage, the uncertainty surrounding the Brexit process has a larger impact on the economy than we have seen so far.

"If that happens, monetary policy would respond appropriately.

"But for now, it seems the net effect of the many underlying forces acting on the UK economy is that slack is

continually being eroded and wage pressure is gently building.

BBC     News.

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