The pound neared a two-year high against the euro on Tuesday (4 January) amid growing expectations that the Bank of England will increase interest rates in February.
Meanwhile two-year and ten-year British government borrowing costs also rose to a two month high, rising six basis points on the day after Prime Minister Boris Johnson announced no new measures were needed to curb Omicron infections. Money markets were reported to be pricing in two 15 basis-point rate increases by the Bank of England prior to its March meeting to combat soaring UK inflation. As of this morning (5 January), £1 was equivalent to €1.20. At the same time, British economic activity has been said to be generally firm, with the latest revised Purchasing Managers Index fig...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
