Business

Pound value rises as Bank of England hints at rate rise

Bank Of ENGLAND

Bank makes announcement and the Pound strengthens against the Dollar.

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The pound jumped against the dollar as policymakers at the Bank of England voted to hold interest rates at 0.25 per cent again today – and hinted an interest rate hike could happen “in the coming months”.

Members of the Bank’s nine-strong Monetary Policy Committee voted 7-2 to keep interest rates on hold at 0.25%. But the committee was talking in much stronger terms about an increase, analysts said.

The pound climbed more than 1% against the dollar to $1.3363 after the Bank’s announcement.

In minutes of its latest rates decision, the Monetary Policy Committee (MPC) said there was a “slightly stronger picture” for the economy since its forecasts last month thanks to signs of a firmer housing market, stronger employment and a rebound in retail and new car sales.

Although seven members voted to hold rates, while two voted to hike, they suggested an easing of monetary policy could begin soon.

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