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East Midlands Chamber News

Pound rises on hints of interest rate increase - BBC

The pound hit a 15-month high against the dollar after a senior Bank of England official fuelled speculation it could raise rates in the coming months.

Gertjan Vlieghe, who is on the Bank's Monetary Policy Committee, said the "moment is approaching" when interest rates might need to go up.

It comes after the Bank voted on Thursday to keep rates at 0.25%, but talked in stronger terms about a rise.

Mr Vlieghe has previously argued against increasing interest rates.

Sterling rose more than 1% against the dollar to hit $1.3590, its highest since June last year.

The pound also gained 0.9% against the euro to rise above 1.13 euros, the BBC reported this morning.

But a separate story said the rising value of Sterling had led to a drop in share prices.