The pound is little moved early on Friday morning

LONDON — The pound is a little higher on Friday morning as investors continue to digest a hawkish interest rate hold from the Bank of England, which as expected, left monetary policy unchanged on Thursday.

That means interest rates stayed at a record low of 0.25%, and the bank’s QE programmes remain capped at £435 billion, despite the surge in the rate of inflation to the highest level since mid-2013.

Rates were left unchanged, but surprisingly the bank’s Monetary Policy Committee voted 5-3 in favour of holding rates at their current levels. That signalled a possible shift in stance from the bank, with the horizons of an interest rate coming closer.

Sterling jumped on that initial announcement before falling away as the afternoon progressed. However, on Friday the currency has bounced back a little, climbing around 0.15% against the dollar, as the chart below illustrates:

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