The sterling has risen against the euro ahead of today's Bank of England (BoE) interest rate announcement.

Against the euro the pound traded 0.15 per cent higher at 67.73p while steadying against the dollar at $1.9931.

Later this morning the BoE is due to announce whether interest rates will move. An earlier survey conducted by Reuters found that five out of 58 analysts forecast an increase of 25 basis points.

Gabriel de Kock, currency economist at Citi, told the news source: "Our view is that the BoE might go ahead and get it over and done with.

"Essentially nothing they've seen recently should change their mind - inflation risk is on the upside and the economy is obviously growing strongly."

The euro was seen to fall on the back of a decision by the European Central Bank to increase rates to four per cent - the highest rate level in almost six years.

Meanwhile in the UK, the sterling may be affected by data which recently showed that consumer confidence has risen for the fifth consecutive month to an 18-month high.