Business UK

Pound value rises as Bank of England hints at rate rise

Bank makes announcement and the Pound strengthens against the Dollar.

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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