Sterling hits 15-month high as high wage growth heaps pressure on BOE

THE pound rose to a 15-month high against the US dollar on Tuesday (Jul 11) after data showed that pay growth exceeded expectations, adding to pressure on the Bank of England to keep raising interest rates.

British wages excluding bonuses were 7.3 per cent higher in the three months to May than a year earlier, figures from the Office for National Statistics showed on Tuesday. Economists polled by Reuters had forecast a 7.1 per cent rise.

Sterling rose 0.3 per cent against the US dollar to US$1.2899, touching its highest level since Apr 25 last year.

The euro fell 0.1 per cent against the pound and last bought 85.43 pence. REUTERS