Sterling breaks above $1.25 for the first time since last year

Sterling appreciated on Tuesday, breaking above $1.25 for the first time since June 2022, as traders turned bullish on a currency trading well below 2016 levels and the central bank’s chief economist left the door open to further interest rate increases.

The pound rose 0.9% to $1.2525, its highest level in 10 months, as the dollar weakened.

In a factor that supported the pound sterling, the chief economist of the Bank of England (BoE), Huw Pill, He said Britain’s central bank cannot yet be sure it has raised interest rates high enough to control inflation.

Pill voted with a majority in the BoE’s Monetary Policy Committee last month to raise the bank’s main interest rate from 4% to 4.25%, its 11th increase since it began raising rates in December 2021.

After falling 10.6% in 2022, sterling is the best-performing G10 currency this year, rising 3.4%, despite grim economic prospects for Britain.

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