The rand lost more than 1.5% against the pound on Thursday after the Bank of England (BoE) indicated that an interest-rate hike to contain inflation was possible in the coming months. Minutes released by the UK bank showed that members of the monetary policy committee expressed concern about rising inflation, which may top 3% — way above the bank’s 2% target. UK bond yields soared in response as the pound gained in risk-off trade. "It seems policy makers are not willing to wait and see whether the above-target inflation is, in fact, transitory or if it has become more ingrained," said Oanda analyst Craig Erlam. The BoE has now joined the Bank of Canada and the US Federal Reserve in contemplating rate increases, while the European Central Bank is looking to taper its stimulus. UK inflation rose to 2.9% in August from 2.6% in July. The rand was also weaker against the dollar after US consumer inflation for August came in higher than expected, at 1.9%, from an expected 1.8%. However, t...
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