that if the Fed was hiking rates, “the Bank of England would not look serious if it didn’t.”
If a country has high interest rates relative to another, this can often lead to increased foreign investment where the rates are higher, as an investor can make more money lending than they can if rates are low and this in turn can strengthen that country’s currency. “We import quite a lot of our goods in the UK and a weak sterling could mean we lose control of inflation as a result of paying for these imports,” he said.
“If the sterling weakens as a result of a US rate hike, this will make a UK rate hike more likely,” he added, though he said he expected the Bank of England to up rates regardless.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: