Sterling stronger after MPC minutes

Story link: Sterling stronger after MPC minutes

Sterling strengthened on Wednesday after the Bank of England released the minutes from this month’s Monetary Policy Committee meeting. The minutes showed that the decision on interest rates was a close one, with 5 committee members voting to hold rates steady and four members, including the Bank’s governor, voting to raise rates. Analysts had thought that the vote had been 7 to 2 in favor of holding rates steady, and most say that the close vote means that another rate hike is in the cards for July.

The pound was 0.3 percent higher versus both the US dollar and the euro, to $1.9930 and £0.6735 respectively, while it added 0.4 percent to ¥246.24 versus the yen by midday in New York. The level against the greenback was a two-week high, while it hit a 15-year high versus the yen.

The Swiss franc was also higher after producer and import prices in Switzerland were up more than had been expected in May. The Swiss currency added 0.3 percent to SFr1.6611 versus the euro, while it also gained 0.3 percent, to SFr1.2370, in relation to sterling.

The Swedish krona was higher versus both the euro and the US dollar after Sweden’s central bank raised interest rates to 3.5 percent. The krona gained 1.5 percent to SKr9.270 in relation to the shared currency, while it was also 1.5 percent higher against the US dollar, to SKr6.9035.

The US dollar was even versus the euro at $1.3420, while it added just 0.1 percent to ¥123.55 versus the Japanese currency.