FTSE 250 soars to record high and pound bounces back as BoE hints interest rate could rise
![The FTSE 250 hit a record high last night](http://web.archive.org./web/20170215134348/http://i.dailymail.co.uk/i/pix/2017/02/07/22/00010C3A00000CB2-0-image-a-98_1486506097152.jpg)
The FTSE 250 hit a record high last night
The FTSE 250 hit a record high last night and the pound bounced back against the dollar after a senior Bank of England official said interest rates may need to rise in the coming months.
Shares in London rallied with the FTSE 250 rising 182.33 points to 18559.7 – its highest ever close – while the FTSE 100 was up 14.07 points to 7186.22.
The mid-cap benchmark has gained 24 per cent since the low it reached after the Brexit vote, while the flagship blue-chip index is up 20 per cent.
Sterling also staged a dramatic turnaround after Kristin Forbes, a member of the panel that sets interest rates at the Bank, said borrowing costs may need to rise in the coming months.
The pound fell as low as $1.2348 against the dollar in early trading but jumped to $1.2545 later in the session after Forbes' comments.
She called the UK 'a star performer relative to its peers' and added: 'If the economy remains solid, this could soon suggest an increase in bank rate.'
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