Pound Gains as BOE Says Rates May Rise More Than Markets Expect
- Broadbent reiterates view that any increase will be gentle
- Non-farm payrolls data unlikely to affect pound dynamic: MUFG
Berenberg's Schmieding Sees Sideways Pound in Limbo
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The pound rose and bonds fell after Bank of England Deputy Governor Ben Broadbent said interest rates could rise more than the markets expect.
Two-year gilts pared this week’s rally on his remarks, though he told BBC Radio that any increase would be gentle. Broadbent’s comments came after the pound fell from an 11-month high on Thursday as the market interpreted the central bank’s decision to leave interest rates unchanged as dovish.