GBP Edges Higher on Hawkish BoE Comments

The British Pound has made gains against the Euro as traders assess signals from central banks.

Deputy Governor Dave Ramsden of the Bank of England said that if inflation pressures continue, there could be a case for increasing interest rates.

Ramsden also highlighted external and domestic risks to inflation, including energy prices and food prices. He noted that inflation risks have tilted more to the upside.

However, analysts at HSBC warn that UK labour demand is weak and private sector momentum is sluggish, which could weigh on the Pound in the near term.