The pound rose as high as $1.2913, its highest since April 2022, and was last trading just shy of that level, up 0.37%.
Current market pricing indicates roughly a further 125 basis points of rate hikes from the BOE, much more than for the Federal Reserve or European Central Bank. Tuesday data showed a key measure of British wages matched its highest growth rate on record, though the unemployment rate did rise unexpectedly.
She said while those further rate rises were already in the price, Tuesday's data had reinforced such views.
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