The pound rose sharply last Wednesday on speculation that the Bank of England will soon raise UK interest rates. The nine-strong Monetary Policy Committee was “unanimous in its decision” to keep rates at 0.5pc, the newly published minutes of its July meeting showed.
That was as expected. The UK’s “bank rate” has been on hold, after all, for no less than 76 consecutive months. “A number of members”, though, are now considering an increase, the latest minutes revealed. And that was what moved the needle, with the pound up over half a cent against the euro the day the minutes were published.