The pound is aiming for the strongest monthly growth since November

The British pound continues to rise, aiming for the strongest monthly growth against the US dollar since November. The main support for the UK currency is provided by a clear decrease in concerns among investors about the banking sector, which caused an outflow of funds from the dollar.

The current quote of the GBP/USD pair is $1.2385. In total, the pound rose by almost 3% in March, remaining near the highest level in eight weeks.

This week, Britain presented statistics on inflation: data showed that the growth rate of food prices in March reached a record high of 17.5%. The driver of such growth was a temporary shortage of some goods. Overall inflation in the UK, at 10.4%, has not yet shown signs of slowing down. 

In this regard, the head of the Bank of England, Andrew Bailey, said the other day that the central bank will most likely need to raise the rate again to curb inflation.

At the beginning of March, it was expected that the UK rate would peak around 5% by the end of the year, which would mean another increase of 75 basis points. After four weeks, market participants began to assume that the rate would reach a maximum of 4.5% by September. And this already means that the Bank of England may once again raise the rate by 25 basis points.