Pound Climbs on Hawkish BOE Tilt as 2018 Rate-Rise Bets Increase
- BOE’s Forbes vote to lift rates drives pound higher this week
- Gilts fall, selling in sterling interest-rate futures
BOE May Make Smaller Adjustments, Says RBC's Lignos
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Sterling headed for its first weekly gain since February and gilts declined as market expectations shifted toward tighter policy in the U.K.
The Bank of England’s rate meeting signaled the potential for increasing hawkishness, with the pound “under-owned following a momentous post-Brexit slide,” according to Steen Jakobsen, chief economist at Saxo Bank A/S. Market pricing now signals around a 95 percent chance of a 25-basis-point rate increase by September 2018, compared with just 60 percent on Wednesday.