The pound has strengthened against the euro and the dollar this morning following the release of UK inflation figures.
The figures show that inflation reached a 10-year high of 5.1% in November, above expectations of 4.7% and surging from October’s reading of 4.2%. This high level of inflation would typically prompt an interest rate hike from the Bank of England. However, it is widely expected that the Bank will keep rates on hold tomorrow due to economic uncertainty brought about by the Omicron variant.
The Bank of England will hold its next monetary policy meeting tomorrow and any surprises could impact the pound.
