Sterling strength after Carney lays out rate hike intentions

Sterling pushed higher yesterday on the news that Mark Carney, Governor of the Bank of England, would vote to raise interest rates should business investment increase in UK. This represents a small but significant hawkish shift from the Governor who has, until now, voted with the majority of committee members to keep rates either where they are or to take them lower. The comments come as the UK faces increasing inflationary pressure yet after Carney said only last week that now is not the time to raise rates. UK government debt came under increased pressure as markets sold bonds, an asset that becomes less attractive as interest rates increase, and has seen this sentiment extend into today's trading. Yesterday's and today's movements in Sterling saw the FTSE 100 let go off gains, sending the index into negative territory.