Sterling Surges as Bank of England's Rate Decision Surprises Markets
The British pound strengthened after the Bank of England cut interest rates amid a divided Monetary Policy Committee. While some members voted for substantial cuts, others opted to keep rates unchanged. Meanwhile, a U.S.-UK trade deal announcement and global currency shifts captured attention, showing a broader economic impact.
Sterling strengthened on Thursday after the Bank of England reduced its main interest rate by 0.25 percentage points to 4.25%, with a surprising split among policymakers, including two voting to maintain existing rates.
At 1114 GMT, the pound had climbed 0.24% against the U.S. dollar to $1.33215 and 0.9% against the yen at 192.80. Meanwhile, the euro fell 0.3% against the pound, trading at 84.78 pence, following an announcement by President Trump on a forthcoming U.S.-UK trade deal.
The Monetary Policy Committee decided to cut rates by a narrow 5-4 vote. Expectations for future rate cuts by the BoE remain, while the dollar maintained gains against major currencies following a Federal Reserve decision to hold rates steady.
(With inputs from agencies.)
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