Sterling rises on economic data

The pound was higher as strong GDP numbers boosted expectations the Bank of England (BoE) will raise interest rates again the…

The pound was higher as strong GDP numbers boosted expectations the Bank of England (BoE) will raise interest rates again the coming months.

The UK economy grew 0.8 per cent in the second quarter of the year, beating expectations of a 0.7 per cent rise. This news, coupled with a higher-than-expected CPI reading of 2.4 per cent earlier this week, has kept sterling well supported in anticipation that rates will rise again.

The BoE has raised rates five times since August last year, with the latest hike to 5.75 per cent coming at the start of this month. Markets now expect rates to hit 6 per cent later this year, which would be their highest level since February 2000.