Pound rises to its highest level since the Brexit referendum
Sterling reaches a new benchmark
The pound’s most-watched overall measure this week reached a level last seen around the June 2016 referendum, according to Bank of England figures. The measure compares sterling with a basket of 18 of the world’s main currencies.
The figures describe the level as a joint high since the referendum. The article also characterizes the milestone as the highest overall level since the vote, which it places over a decade ago.
Earlier falls followed major events
The currency has reacted strongly to developments around Brexit and to political uncertainty in recent years. Its latest rise marks a contrast with those periods of decline.
Impact and rate decision ahead
A stronger pound can help restrain inflation and raise consumers’ purchasing power for imported goods and holidays. The gains may therefore affect both prices and what people can buy abroad.
The Bank of England’s nine-member Monetary Policy Committee faces an interest-rate decision on Thursday. A first rise in three years is widely expected.
Key points
- Sterling’s measure against 18 major currencies reached a joint high since June 2016.
- The pound fell after the referendum and during later periods of economic and political uncertainty.
- A stronger currency can help curb inflation and increase buying power for imports and holidays.
- An interest-rate increase is widely expected at the committee’s Thursday decision.