November 17, 2021
Economy

Pound Soars Against The Dollar As Traders Bet On Interest Rate Hike

The pound soared against the dollar and the euro as investors ramped up their bets on an imminent interest rate hike

Sterling surged above $1.38 for the first time since mid-September on expectations the Bank of England could raise the cost of borrowing as soon as November 4 – two weeks tomorrow.

And in a boost for holidaymakers who have begun to take advantage of loosening travel restrictions in Europe, the pound rose towards €1.19, its highest level against the euro since February 2020 when the pandemic struck.

Rates decision: Sterling surged above $1.38 for the first time since mid-September on expectations the Bank of England could raise the cost of borrowing as soon as November 4 

However, experts warned that an early interest rate rise may be an error that would need to be reversed as the economy weakens.

Rising interest rates would push up the cost of variable…

Read full article here: todayuknews.com