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.