The pound is near an 18-month high against the euro this morning and is strong against the dollar, following the Bank of England’s latest monetary policy meeting last week. The Bank said it was likely to raise interest rates in 2022, two years ahead of current expectations.
Officials also said that after two interest rate hikes, they would begin ‘quantitative tightening’ and is the first central bank in the world to start thinking about contracting its balance sheet via asset sales.
Thursday this week will bring a slew of data releases, including GDP and industrial production figures. GDP is expected to have grown by 4.8% quarter-on-quarter in the second quarter of this year.
