Pound Gains as Inflation Boosts Bets on Interest Rates Hike

The Great Britain pound advanced today on the speculation that Britain’s central bank will raise the interest rates to slow the growing inflation, which was bolstered by the surging oil prices.

The inflation accelerated to 4 percent last month, the 14th straight month of a consumer prices increase, while the central bank’s target is just 2 percent. The anticipation of an interest rates increase boosted the sterling versus the dollar by 1.3 percent this month and 3.9 percent this year.

GBP/USD surged from 1.6081 to 1.6246 as of 16:52 GMT today after it reached 1.6275. GBP/JPY jumped from 131.31 to 133.11.

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