GBP Higher After BOE’s McCafferty Urges Rate Hike

Sterling rose to a two-week high Tuesday after comments from Bank of England policymaker Ian McCafferty that the central bank should not delay in raising interest rates again. “We shouldn’t dally when it comes to tightening policy modestly,” McCafferty said, speaking in an interview with Reuters.

The BOE policy maker, who voted in favor of a rate rise at last month’s meeting of the central bank, said that wage growth may be picking up at a stronger pace than his colleagues have seen. That in turn could put pressure on inflation, McCafferty said. The U.K. pound GBPUSD, +0.3255% hit $1.4159 against the dollar in the wake of the remarks, up 0.2%, against $1.4130 late Monday in New York. Against the euro gpbeur , sterling was 0.2% better at €1.1497.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza