With UK inflation rising, further divisions are forming among the members of the MPC. Today’s minutes of the last meeting revealed that the number of members voting for a rate rise increased from two to three.

The pound has jumped against the dollar as a result – reaching an annual high. Great news for anyone travelling to the States or for British expats living in the US and making regular payments.

David Kerns, Dealing Manager at Moneycorp:

“Sterling rose this week on the news that Bank of England chief economist Spencer Dale had joined Andrew Sentence and Dr Martin Weale in calls for an immediate interest rate hike.  The pound is now trading close to 1.6270 against the US dollar – the highest it has been so far this year.

“Now is a good time to transfer pounds into dollars, and anyone travelling to the US or making regular payments there should act quickly to cash in on the favourable exchange rate before it’s too late.”