Pound hits highest level since Brexit vote as Bank of England decides on rate rise today at 5pm PKT

The British pound has risen to its highest overall level since the Brexit referendum of June 2016, the BBC reported, ahead of a Bank of England decision on Thursday at 12:00 GMT (5pm Pakistan time) that most analysts expect to bring the first UK interest rate rise in more than three years. In Pakistan the pound is at about Rs 372.76, up from Rs 371.21 a day earlier (pound rate today).

The numbers

• Trade-weighted index: 86.4 on the Bank of England's measure against 18 major currencies (2005 = 100), its joint highest since the referendum. The Bank confirms the figure on Thursday.
• Against the dollar: up 0.28% at $1.3434 late on Wednesday.
• Against the euro: flat at €1.1996.
• UK inflation: 3.5% in the year to September, up from 3.1% and well above the 2% target, driven mainly by petrol and diesel costs from the Iran war.

What the Bank of England is expected to do

Most analysts expect the Monetary Policy Committee to raise Bank Rate from 3.75% to 4%, the BBC reported. The rate has been unchanged for six meetings and was last raised in August 2023; it peaked at 5.25% in 2023-24. A rise makes mortgages and loans dearer in the UK but pays savers more. Traders said investors now see the UK in a better light because of political stability, solid growth and closer ties with the EU, though higher fuel prices have dented consumer confidence.

What it means in Pakistan

The UK is one of the biggest sources of remittances to Pakistan, and a stronger pound means each pound sent home buys more rupees.

These are reference rates; banks and exchange companies add their own margin. Convert any amount with our currency converter.

The flip side is cost. UK university fees, visa fees paid in sterling and travel to Britain all get dearer in rupees as the pound rises. A family paying a £20,000 tuition bill now needs about Rs 31,000 more than it did a day earlier.

What to watch

If the Bank raises rates and signals more to come, the pound could climb further; a cautious message could take some of the gain back. We will update the pound rate page after the decision.