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BoE's Vlieghe paints hawkish picture for rates

Gertjan Vlieghe, a member of the Bank of England's monetary policy committee, said he expects interest rates to rise by 25 basis points to 50 basis points per year over the next three years, assuming uncertainty around Brexit fades over the coming years.

Vlieghe's forecast is slightly higher than the conditioning assumption for interest rates in the BoE's May inflation report and is above market expectations of just under three 25-basis-point hikes over the period, Reuters reported.

Sterling rose 0.23% against the dollar as of 7:50 a.m. ET.

The BoE left its key interest rate unchanged at 0.5% at its May meeting, when BoE Governor Mark Carney indicated the possibility of two rate rises over a year and a half. Earlier in the year, he suggested the bank was considering three hikes in three years and could raise rates faster than expected.