UK interest rates stay at 0.25% but Bank of England hints rise is looming

Pounds jumps 1% as governor says Bank is ‘beginning to shift’ on when to raise rates with a rise is possible ‘in coming months’ to stem inflation

The Bank of England has raised the prospect of an interest rate rise as early as November, in an attempt to relieve the squeeze on living standards from surging prices and sluggish wage growth.

On Thursday, Threadneedle Street left interest rates at their record low of 0.25% amid fears over Brexit, but dropped a heavy hint that the first increase in the cost of borrowing for a decade may come sooner than expected if the economy continues to strengthen.

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