Economic news

Pound rises to one-week peak against euro after BoE rate comments

The pound jumped to a one-week peak versus the single European currency on Tuesday following a top Bank of England official's comments on the further interest rate hikes.

Photo: Reuters

The British currency gained 0.2 percent to a one-week top versus the euro at 87.60 pence. Against the greenback, the British currency continued to rise to trade at $1.3492.

Bank of England policymaker Gertjan Vlieghe said that interest rates are on track to increase 25 to 50 basis points every year over a three-year prediction period, a statement interpreted by traders as supportive for sterling.

Although recent gains were limited ahead of key economic figures due out this week, including inflation on Wednesday and the GDP numbers on Friday.

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