Pound sterling reaches highest level since Brexit referendum

According to the Bank of England, the index of the pound's value against a basket of 18 major world currencies has reached 86.4 — its highest level since the June 2016 referendum. The rise is linked to political stability, economic growth and closer ties with the EU; the first rate rise in three years is expected on Thursday.

Otabek YusupovFirst published on tafs uz 5 November 2026 at 02:482 min read

The key facts

The pound index reached 86.4 on a 2005 base of 100 — the highest since June 2016
The rise comes amid an expected rate rise by the Bank of England
The first rate rise in three years is expected on Thursday

Pound at decade high

The pound has risen to its highest combined level since the Brexit referendum held more than ten years ago. This was reported by BBC News, citing Bank of England data: the most closely watched measure of the British currency's value against a basket of 18 major world currencies reached 86.4 points this week on an index where 100 corresponds to the 2005 value. The Bank is expected to officially confirm the calculation on Thursday.

What lies behind the rise

In recent weeks the sterling has strengthened noticeably against the euro and the dollar amid expected interest rate rises. After the June 2016 referendum the pound fell sharply, and then dropped even lower during the Brexit process, the Covid pandemic and the 2022 'mini-budget'. According to the BBC, some traders attribute the current strengthening to a changed perception of the UK, taking into account its relative political stability, sustained growth and closer ties with the European Union. Economist and former Treasury minister Jim O'Neill said: 'I am not surprised. People underestimated, and to a lesser extent still underestimate, the improving momentum in the UK.'

Practical consequences

A stronger pound could curb inflation and boost consumers' purchasing power for imports and travel abroad. At the same time, as the BBC notes, UK economic growth this year has exceeded all expectations, but there are signs that higher energy and fuel prices have already hit consumer confidence. On Thursday, the Bank's nine-member Monetary Policy Committee will make an important decision on rates: the first rise in three years is widely expected.