Pound rises to its highest level since the Brexit referendum
Summary
Sterling has reached its joint highest level since the June 2016 Brexit referendum on the Bank of England’s measure of its value against a basket of currencies. The rise comes ahead of an interest-rate decision on Thursday, when the Bank is widely expected to raise rates for the first time in three years.Key Facts
- The currency index reached 86.4, with 100 representing its value in 2005.
- The index tracks sterling against a basket of 18 major currencies.
- The Bank of England is due to confirm the calculation on Thursday.
- Sterling has risen in recent weeks against both the euro and the U.S. dollar.
- Traders cited relative political stability, solid growth and closer ties with the European Union as factors affecting views of the UK.
- A stronger pound can lower the cost of imported goods and holidays and help curb inflation.
- UK growth has outperformed expectations so far this year, while higher energy and fuel prices have weighed on consumer confidence.
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