Pound Gains as More Policy Makers Vote for Rates Increase
The Great Britain pound rose today, erasing yesterday’s losses versus the US dollar, as third policy maker of the Bank of England joined those who are voting for an increase of the interest rates.
The majority of the policy makers still believe that the rates should be left unchanged but the increasing number of the central bank’s members voting for an increase fuels the anticipation of the rates hike. The minutes of the Monetary Policy Committee said that:
Andrew Sentance preferred to increase Bank Rate by 50 basis points. Spencer Dale and Martin Weale preferred to increase Bank Rate by 25 basis points.
GBP/USD traded near 1.6221 today as of 16:55 GMT after it earlier rose from 1.6134 to 1.6272.
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Earlier News About the Great Britain Pound:
- Weekly Gains of Pound on Anticipation of Interest Rates Hike (2011-02-19)
- Great Britain Pound Jumps as Retails Sales Grow (2011-02-18)
- Pound Rebounds as Sentance Insists on Rising Interest Rates (2011-02-17)
- King Cools Expectations for Interest Rates Hike, Sterling Drops (2011-02-16)
- Great Britain Pound Rises as BOE Governor Expects High Inflation (2011-02-16)