Pound on Seven-Day Hot Streak as BOE Stiffens Hiking Rhetoric
- Carney and Haldane hint that raising rates a possibility
- Sterling on its longest winning streak since April 2015
Carney Says BOE May Need to Start Raising Rates Soon
The pound rose for a seventh day versus the dollar, set for its longest winning streak since April 2015, after Bank of England Governor Mark Carney said Wednesday that the Monetary Policy Committee may need to raise interest rates despite a weakening economy.
Sterling erased its post-election losses and rose against most of its 16 major peers Thursday after Carney appeared to rein back on some of his rhetoric from last week when he suggested that he was firmly placed among the other doves on the MPC. It extended gains past $1.30 as chief economist Andy Haldane told the BBC that the BOE needs to look seriously at raising rates. The U.K. currency could move up toward $1.35, according to Lee Hardman, a foreign-exchange strategist at MUFG in London.