# BoE sees growing case for rate rise as inflation to stay higher for longer | Reuters

> Two-year British gilt yields surged by their largest move since March 2020 as traders bet the Bank of England would raise rates earlier. Sterling gained almost a cent against the dollar. The BoE would be the first major central bank to hike since the pandemic.

- Date: 2021-09-23 · published 2021-09-23T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/45307-boe-sees-growing-case-for-rate-rise-as-inflation-to-stay-higher-for-longer
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expected tighter UK monetary policy supports sterling, which strengthens the pound against the dollar and euro. For feed buyers this is a modest currency signal affecting import costs.

## Read by commodity

- DXY: neutral
- USDBRL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-08-25 | [USD/BRL Flat As Investors Brace for Rate Hikes Amid Higher Inflation](https://feedsoft.ai/events/45758-usd-brl-flat-as-investors-brace-for-rate-hikes-amid-higher-inflation.md) | -2.6% | -0.1% |
| USDBRL | 2024-09-05 | [Brazil's central bank sees stronger growth, higher FX since latest policy meeting \| Reuters](https://feedsoft.ai/events/28519-brazil-s-central-bank-sees-stronger-growth-higher-fx-since-latest-policy.md) | +0.1% | -3.6% |
| USDBRL | 2025-03-27 | [Brazil's central bank signals need for higher rates for longer](https://feedsoft.ai/events/25807-brazil-s-central-bank-signals-need-for-higher-rates-for-longer.md) | -0.7% | -0.7% |
| USDBRL | 2022-12-07 | [Brazil Holds Key Rate at 13.75% as Lula’s Spending Plan Adds to Inflation Risk - Bloomberg](https://feedsoft.ai/events/38433-brazil-holds-key-rate-at-13-75-as-lula-s-spending-plan-adds-to-inflation-risk.md) | +0.5% | +2.7% |
| USDBRL | 2023-09-26 | [Brazil inflation accelerates as cenbank reiterates rate cut pace](https://feedsoft.ai/events/34321-brazil-inflation-accelerates-as-cenbank-reiterates-rate-cut-pace.md) | +2.3% | +0.7% |
| DXY | 2024-11-20 | [UK inflation jumps to 2.3%, underscoring BoE's stance for gradual rate cuts](https://feedsoft.ai/events/27644-uk-inflation-jumps-to-2-3-underscoring-boe-s-stance-for-gradual-rate-cuts.md) | +0.8% | +1.0% |
| DXY | 2021-11-15 | [Sterling rises from 11-month low; investors focus on Brexit and BoE \| Reuters](https://feedsoft.ai/events/44290-sterling-rises-from-11-month-low-investors-focus-on-brexit-and-boe-reuters.md) | +0.6% | +1.2% |
| DXY | 2022-10-15 | [Fed's Bullard says boost to dollar from interest rate hikes may ease \| Reuters](https://feedsoft.ai/events/39330-fed-s-bullard-says-boost-to-dollar-from-interest-rate-hikes-may-ease-reuters.md) | -0.5% | -3.8% |

## Sources

- reuters.com: https://www.reuters.com/world/uk/bank-england-keeps-interest-rate-unchanged-01-2021-09-23/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.