Pound Gains vs. Euro as Dale Talks About Higher Rates

The Great Britain pound gained today versus the euro as Executive Director and Chief Economist of the Bank of England Spencer Dale spoke about necessity to increase the lending rates, despite the problems of the UK economy. The currency slipped against the US dollar.

Dale said in an interview with the Financial Times:

I’m not at all confident that the recovery has taken hold and will definitely power away. However, I’m even more worried about what’s going on in terms of inflation.

The UK inflation accelerated to 4.5 percent in April, making analysts think that the BoE will be forced to raise the main rate to 0.75 percent from 0.5 percent by the end of this year.

EUR/GBP dropped to 0.8679 from 0.08705 today as of 10:06 GMT, following the earlier drop to 0.8663. Meanwhile, GBP/USD went down to 1.6119 from 1.6222.