The Pound Sterling is back on the climb after the minutes from the latest Bank of England Monetary Policy Committee meeting showed the decision was split for the first time in eight months, with Kristin Forbes voting in favour of raising rates by 0.25%.
Forbes, who retires from the MPC in June, felt inflation “was rising quickly,” and would most likely remain above the Bank of England’s 2.00% threshold for at least the next three years.
Inflation reached its highest level in over two years in January at 1.80%, boosted by the Pound’s recent weakness and higher crude oil prices.
GBPUSD soared above 1.2360 before pulling back as the news of the split verdict gave traders hope that interest rates could be rising sooner than previously anticipated despite the looming risks of Brexit negotiations.
Bank of England Leaves Rates on Hold
Daily Analysis - 17/03/2017