Interest rates in the UK will rise in July

Sterling eased against the euro on today.

Inflation poses a big headache for the B of E as its ability to curb prices with interest rate rises is limited by slowing growth, a potentially painful mix for the economy and thus for sterling.

A downward revision to UK first quarter growth on Friday highlighted the pressures facing the B of E, while the European Central Bank's signals that it will fight inflation with a July rate hike are supporting the euro.

Right now Interbank is at 1.2588

source:IFX