U.K. Pound Advances on Speculation Bank Will Raise Rates by Half-Point

(Bloomberg) -- The pound advanced against the dollar and the euro after an industry survey showed the price of goods in U.K. shops rose last month, fueling speculation the Bank of England will raise interest rates by 50 basis points tomorrow.

The U.K. currency may advance as traders price in the likelihood that policy makers will lift borrowing costs to 5.75 percent at their monthly rate-setting meeting after inflation breached their target by more than a percentage point. All 61 economists surveyed by Bloomberg News on May 3-4 forecast the BOE would increase its benchmark rate by 25 basis points.


Read more at Bloomberg Currencies News