Above: Governor Andrew Bailey. Image copyright Pound Sterling Live, courtesy of Parliament.tv
Rising odds of a December interest rate hike at the Bank of England have lifted the Pound to Dollar exchange rate up and away from its recent 2021 lows.
“Sterling rallied in U.S. trade on Monday, sending GBP/USD up 0.25% to 1.3443 on the back of rising BoE hike expectations as the pound continues to consolidate above last week’s 11-month lows by 1.3354,” says Paul Spirgel, a market analyst at Reuters.
OIS markets – interest rate futures markets that reflects when investors anticipate a rate hike – put the odds for December UK rate liftoff above 60%, above last week’s 50%.
The support for the British Pound came after Bank of England Governor Andrew Bailey said he was uneasy about the inflation situation.
Above: GBP/USD at four-hour intervals.
- GBP/USD reference rates at publication:
- High street bank rates (indicative band):…