Sterling was on the rampage today after a hawkish Bank of England announcement. The central bank cited higher inflation as a reason to raise interest rates in the “coming months”. A statement that sent the pound surging against the majority of its counter parties. Interest rates however, remain on hold at 0.25% and the policy vote was as expected at 7-2. The hawkish tone helped the Pound climb over 1% against the Euro and Dollar this afternoon.
Across the pond, the US released a key reading of inflation. US CPI registered a better than expected 0.4%, against forecasts of 0.3%. The rise in prices adds further fuel to the fire for the Federal Reserve to raise interest rates this year. Unemployment claims also posted a better than expected figure at 284k.