The pound has hit a two-month high against the euro and one-year high against the US dollar, after the Bank of England warned interest rates could rise for the first time in a decade in the coming months - with policymaker Gertjan Vlieghe today dropping further hints of a looming hike. The Monetary Policy Committee (MPC) has this week warned the base rate will soon rise from 0.25 per cent, if the economy continues along the same path.MPC member Gertjan Vlieghe, has now dropped further hints that a hike is coming soon. In a speech he today said: "If these data trends of reducing slack, rising pay pressure, strengthening household spending and robust global growth continue, the appropriate time for a rise in Bank Rate might be as early as in the coming months. “It comes after inflation shot up to 2.9 per cent in August - raising interest rates is one way for Bank of England to help keep the cost of living in check. In a statement the MPC yesterday said: "Some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to return inflation sustainably to target."
Source: Express UK
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