As was widely expected the Bank of England have kept the base rate at the record-low levels of 0.25%. Despite some expectations for further dissent amongst the rate-setting committee Mccafferty and Saunders remain the only two calling for higher rates.
The accompanying statement contained some hawkish rhetoric with perhaps the most telling line revealing that all MPC members think that rate hikes will be faster than the current market pricing and this has provided the catalyst for a strong move higher in the pound.
The pound has surged higher immediately following the announcement, with sterling rising across the board and jumping back up towards it 1-year high against the US dollar which was printed just yesterday. The appreciation has weighed on some stock however with the FTSE 100 tumbling to its lowest level of the day in the immediate reaction to the release.
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