Pound v US dollar: GBP rallies as BoE meeting prompts rate hike speculation

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Sterling is currently at $1.335 against the US dollar, up 1.1% per cent from its opening levels of around $1.315.

Sterling sentiment improved dramatically this afternoon as the BoE struck a more

hawkish tone in its latest monetary policy meeting, leading to speculation of an interest rate hike in the coming months, despite the Monetary Policy Committee (MPC) voting 7-2 in favour of leaving rates unchanged this month.

In his accompanying statement BoE Governor Mark Carney suggested that the UK’s economic performance had been a little more robust that expected since its August Inflation Report, with GDP rising in line with estimates and unemployment falling to a new 42-year low.