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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