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GBP/USD ticks higher as BoE deputies signal openness to a rate hike
The Bank of England kept its Bank Rate at 3.75% on Sept. 17, with half of the six-to-three hold voters now saying an increase could be needed.
The Bank of England held the UK Bank Rate at 3.75% on Sept. 17, 6 votes to 3, and FXStreet reports that half of the policymakers who backed the hold now believe a hike may be required. BoE Deputy Governor Ramsden said in London on Monday that an increase could be warranted if upside pressure on the inflation outlook continues to build.
The report says Ramsden pointed to the same concern previously raised by Deputy Governors Breeden and Lombardelli, that energy prices can feed into wage bargaining and price-setting. It also notes that three deputy governors, if they join the dissenters, could lead to a rate increase in November on a vote outcome similar to the Sept. 17 split.
FXStreet adds that GBP/USD closed just above 1.3250 for a second straight gain. The article further states the BoE has held at 3.75% at every meeting this year, while the ECB and the Fed have raised rates since Feb. 28, when the Iran war began.
Latest closeGBP/USD 1.325 ▲0.0%