GBP Edges Higher as BoE Deputy Governors Lean Toward Rate Hike

The Pound Sterling has edged higher against the US Dollar as three Bank of England (BoE) deputy governors suggest they may support a rate hike in November. The BoE held its UK interest rate at 3.75% on September 17, with six votes to three against raising it further.

Deputy Governors Ramsden, Breeden, and Lombardelli have all hinted that a rate hike could be necessary if inflation continues to rise. They point to the risk of energy prices feeding into wage bargaining and price-setting. The BoE's decision on interest rates is scheduled for November 5.

The Pound Sterling has been impacted by the BoE's decision not to raise interest rates since February, when the Iran war began. In contrast, the European Central Bank (ECB) and the Federal Reserve (Fed) have both raised rates during this time. The Fed will meet on October 28 to decide whether to raise rates again.

External member Taylor is a key player to watch before the BoE's decision, as he is one of the six members who voted to hold interest rates steady in September. He is scheduled to speak on Tuesday at 15:30 GMT.