Pound Rises After BoE Rate Cut Amid US Trade Talks
The British pound increased in value following the Bank of England's reduction of interest rates. The 0.25% rate cut comes as the UK nears a trade agreement with the US. Despite mixed reactions among policymakers and pressure on government bonds, UK stocks showcased modest gains.
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The pound strengthened on Thursday, following the Bank of England's anticipated decision to slash interest rates as the UK approaches a trade deal with the US. The central bank reduced its main rate by 0.25%, to 4.25%, despite differing opinions among policymakers.
The exchange rate saw the pound climb by 0.2% to $1.3311, recovering from a low of $1.3242 earlier in the day. UK equities experienced a mixed reaction; while midcap stocks rose by 1%, the main blue-chip index recorded a more modest 0.2% increase.
In the bond market, UK government bond yields rose, with 10-year yields increasing by 3.5 basis points to 4.491%. This uptick reflects the market's response to the central bank's decision amid broader global economic uncertainties.
(With inputs from agencies.)
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