The sterling has peaked over the day on Thursday driven by the decision o the Bank of England. UK's central bank left interest rate unchanged though commented that an upward revision could take place earlier than forecast.
In the course of the day, the sterling to US dollar hiked to some 1.3977. The previous level was at 1.3885 before the report. The euro weakened against the sterling to 0.8749.
The observed currency strengthening followed the statement by the Bank about the possible higher-pace increase of interest rate compared to the market expectations.
“Were the economy to evolve broadly in line with the February Inflation Report projections, monetary policy would need to be tightened somewhat earlier and by a somewhat greater extent over the forecast period than anticipated at the time of the November Report,” the meeting minutes read.
The interest rate has been left at 0.5% today.
Besides, the regulator also upgraded its outlook, so currently the bank forecasts faster economic growth in 2018 and 2019. As a result, the current growth pace is anticipated at 1.8% (1.6% earlier) and 1.8% (1.7%) respectively.