Business · 21 August 2026

Pound rises for a fourth week as markets expect interest rate hikes

The currency climbed to about $1.37 on Friday, boosted by a weak US dollar and persistent bets on higher borrowing costs. Although economists predict the Bank of England will leave interest rates alone this year, financial traders anticipate a minimum of one rise during 2026. Analysts suggest stubborn inflation might force the central bank into action, despite a recent drop in retail sales.

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