U.K. Pound May Gain as BOE Expected to Increase Interest Rates at Meeting

(Bloomberg) -- The pound may advance before the end of today's meeting of Bank of England policy makers, who are expected to raise interest rates to a six-year high to check quickening U.K. inflation.

The U.K. currency yesterday rose to a week-high against the dollar after reports showing rising prices and consumer sentiment caused traders to price in the likelihood the central bank will lift borrowing costs by 50 basis points to 5.75 percent. All 61 economists surveyed by Bloomberg News expect the central bank to announce a quarter point increase in its Bank Rate at noon.


Read more at Bloomberg Currencies News