Sterling pops higher
Sterling popped higher against the euro and the dollar yesterday, gaining around 1p and half a cent respectively, after Bank of England MPC member Kristin Forbes said an increase in UK interest rates could soon be warranted
Forbes thinks that inflation might pick up more quickly, and growth remain firmer, than the MPC as a whole believes, hence her comment on interest rates. It’s worth noting, perhaps, that Forbes was the lone member to vote against corporate bond purchases, and one of three to vote against purchases of government bonds , decided upon by the MPC last August. This highlights that the MPC operates very much on a one-person one-vote basis, and Forbes view on rates may not be shared by a majority of MPC members
The euro is little changed against the dollar at around $1.0650, well within the range of $1.06 to $1.08 that has prevailed over the past month
Equity markets in both Europe and the US were broadly flat yesterday, while government bond yields in the US nudged lower and are now trading back below 2.40%. French yield spreads over Germany steadied after widening out quite a bit on Monday
Data is thin on the ground again with the RICS housing survey in the UK due this evening