Sterling hits a two-week high against the dollar

UNITED KINGDOM (OBSERVATORY) –┬áThe pound rose to a two-week high as the dollar fell and after a senior member of the Bank of England’s monetary policy committee said the British central bank should move ahead with higher interest rates to curb inflation.

Economists expect the Bank of England to raise interest rates in May and comments by Ian McCafferty, along with strong housing market data this week, have been further encouraged.

In an interview with Reuters, MccAfferty, one of two members of the Monetary Policy Committee, voted in favor of an interest rate hike last month, saying wage growth could be stronger than most of his colleagues expected, adding to inflationary pressures that are higher than the central bank’s target.

Following McAfee’s comments, the Sterling rose 0.3 percent against the US currency to $ 1.4188 before retreating slightly to $ 1.4158 by 0550 GMT.

Against the European currency, sterling rose 0.1 percent to 87.15 pence per euro.