Pound scales new heights as Carney drops fresh rate hike hint

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Sterling has hit a fresh seven and a half year high against the euro after Bank of England governor Mark Carney suggested the UK base rate could rise at the turn of the year.

In a speech at Lincoln Cathedral last night, Carney said the decision on when to raise rates “will likely come into sharper relief around the turn of this year”, fuelling fresh speculation over the timing of a hike. It followed comments from the governor earlier this week stating the UK is “moving closer” to a hike. In response, sterling rose another 0.3% against the euro from Thursday’s multi-year high to €1.438, and reached its highest level since early 2008 against a basket of currencies. The pound was also 0.2% higher against the dollar, close to the two-week high of $1.567 re...

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