Rachel Reeves, the shadow chancellor, said she believes the Bank of England will be “very nervous” about the fall in the value of the pound.
She told the BBC: “I was an economist at the Bank of England for many years before I became a member of Parliament and they have got an inflation target.
“What we saw, what we have seen in the financial markets, is putting further pressure on inflation… there is an expectation in the markets… I think on Friday it began to be priced in that there is a 50/50 chance of that one percentage point rise in interest rates.
“The Bank of England will have to make their decision.
“They are rightly independent but they will be very nervous about the fall in sterling and the increase in the cost of borrowing already.”