EL7.AI
ForexMedium•5 November 2026•
1 min read

Pound Hits Highest Level Since 2016 on Interest Rate Hike Expectations

Key Facts

1The Bank of England's trade-weighted sterling index hit 86.4, its highest level since the 2016 Brexit referendum.
2The pound's rise is driven by a weaker US dollar and expectations of a Bank of England interest rate hike today.

The Bank of England's trade-weighted sterling index hit 86.4, marking its highest level since the 2016 Brexit referendum. GB News reported that the currency's appreciation is fueled by market expectations of an interest rate hike by the Bank of England scheduled for today.

The pound's strength is supported by a weaker US dollar following midterm election results and domestic monetary anticipation. Alongside this currency milestone, data released on November 5, 2026, showed the UK Construction PMI fell to 43.6, missing the forecast of 46.1.

The Bank of England is scheduled to announce its interest rate decision and release its Inflation Report later today, November 5, 2026, with forecasts projecting a rate increase to 4% from the previous 3.75%. Governor Andrew Bailey is also expected to deliver a speech following the announcement.

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