The pound rose against the U.S. dollar on Tuesday after BOE Carney said the point of raising interest rates is “is moving closer.”
At his testimony to Parliament’s Treasury Committee, BOE governor Mark Carney said “the point at which interest rates may begin to rise is moving closer.”
“Once rates begin to adjust, we expect for those adjustments to be at a gradual pace and to a limited extent,” he revealed.
Carney attributed the rise in interest rates to consistent growth, rise in domestic costs and “counter-balanced by disinflation imported from abroad.”
The BOE left its interest rates on hold last week, where many analysts foresee the first rate hike to occur next year.
As of 11:13 GMT, the GBP/USD traded higher at 1.5580 after setting a high of 1.5600, reminding that it plunged today after the drop in U.K. CPI to zero in June.