Sterling roughly unchanged after six-session rally and Bank of England rate hike
TLT•TLT•TLT•TLT•Sterling was roughly unchanged after the Bank of England raised its rate to 4% from 3.75%, while policymakers signaled the scope of further tightening could be smaller than markets had priced. The pound rose 0.01% to $1.3473.
The Bank of England’s Monetary Policy Committee voted 8-1 to raise rates to 4% from 3.75%. The dissenting policymaker wanted a larger hike, rather than holding rates steady.
Before the decision, markets had priced in three quarter-point rate rises for 2027, more than most economists thought likely. The pound was up 0.01% at $1.3473 after touching $1.35025 on Wednesday, its highest level since September 15.
The trade-weighted pound rose to 86.37, its highest level since the Brexit vote 10 years ago, but remained below the roughly 88 level recorded before the vote’s result. Sterling was up 0.05% at 83.48 pence per euro.
