The pound strengthened against the euro and jumped by over 1% against the dollar following the Bank of England’s latest interest rate decision yesterday but has weakened slightly this morning.
After initially falling on the news that the BoE will be raising interest rates by 25 basis points, a figure that was largely ‘priced in’ and disappointing compared to the US central bank’s hike of 75 basis points, sterling climbed against the greenback and the euro as expectations for a 50 basis point hike in August increased.
Yesterday’s hike, which aims to tackle the UK’s soaring inflation, will bring the base interest rate to 1.25%.
There are no data releases for the UK today. Markets will now be looking ahead to Wednesday’s inflation figures.
