Prime News: British pound rallies as markets await BOE to increase rate

The British pound reached a one-week high Thursday on speculations the Bank of England will follow suit in increasing interest rates in the following months.

BOE Governor Mark Carney implied rate decision will take effect around the turn of the year and has said the central bank need not to wait for the Federal Reserve to increase rates.

Against the US dollar, sterling stood at $1.5592. The currency reached 69.855 pence per euro.

Market is looking at February next year for rate rise but I guess there is a realization there is certainly “a risk that could be pushed forward if the Fed goes in September,” said Dedrek Halpenny, European Head of Global Markets Research at Bank of Tokyo-Mitsubishi UFJ.

The central bank’s monetary policy committee is scheduled to meet next week, in which they are expected to release its decision on interest rates, vote count and summary of the debate, and quarterly projections for UK economy.

The material has been provided by InstaForex Company –