The British Pound rose for a third consecutive week against the US Dollar
after a hawkish-sounding Bank of England Quarterly Inflation
Report rekindled interest rate hike speculation, as expected. Governor Mark Carney reminded investors that tightening is the next most likely direction for monetary policy
, adding that the central bank
intends to look past near-term downside inflation
shocks from falling food and oil
prices. Investors now price in at least one 25 basis point increase in the baseline lending rate over the coming 12 months, with futures
markets reflecting bets on a move in the fourth quarter of this year.