NEW YORK: The British pound rallied against major currencies Wednesday as the Bank of England governor discussed raising interest rates within months and a poll showed lower support for Scottish independence.
Mark Carney, addressing union leaders, said the central bank could raise its main interest rate from a record-low level in early 2015, citing the country's solid economic recovery.
"You can expect interest rates to begin to increase," Carney said, adding that the bank's forecasts show that hiking rates by the spring of 2015 would allow it to meet its jobs growth and inflation targets.
Meanwhile, a new poll showed a slim majority of Scottish voters opposed to leaving the United Kingdom in next week's referendum.
That was a reversal from a poll Sunday that showed majority support for independence, sending shockwaves through British political and business circles.
A "yes" vote would open the door for long, complicated negotiations on how the closely linked economies would be disentwined, including the fate of the pound as Scotland's currency.
"The implications of a 'Yes' vote would be huge, and are magnified by the sense of institutional unpreparedness" for the shift, said Deutsche Bank foreign exchange strategist Oliver Harvey.
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