Sterling Edges Higher as UK Retail Sales Add to Rate Hike Pressure

UK retail sales volumes rose 0.5% in August, contrary to economists' forecasts of a 0.2% fall.

This modest increase lifted sterling by 0.1% to $1.337 and added to the pressure on the Bank of England to raise interest rates.

The Bank of England kept its benchmark rate at 3.75%, but forecast inflation peaking above 4% in early 2025, a level that may slow down growth later in the year.