(Bloomberg) -- The pound rose against the dollar,
snapping three days of losses, on speculation the worst floods in
60 years will cause inflation to accelerate, strengthening the
case for higher interest rates.
The Centre for Economic and Business Research yesterday said
the floods could add 0.5 percent to the inflation rate later this
year, forcing it to quicken to a decade-high, rather than decline
as forecast by the Bank of England. Policy makers will raise
borrowing costs to 6 percent by year-end after holding them at
5.75 percent at their Aug. 2 meeting, according to a Bloomberg
News survey.
Read more at Bloomberg Currencies News
snapping three days of losses, on speculation the worst floods in
60 years will cause inflation to accelerate, strengthening the
case for higher interest rates.
The Centre for Economic and Business Research yesterday said
the floods could add 0.5 percent to the inflation rate later this
year, forcing it to quicken to a decade-high, rather than decline
as forecast by the Bank of England. Policy makers will raise
borrowing costs to 6 percent by year-end after holding them at
5.75 percent at their Aug. 2 meeting, according to a Bloomberg
News survey.
Read more at Bloomberg Currencies News
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