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U.K. Banking Shares Jump as Bank of England Hikes Interest Rates

  • Barclays, NatWest, Lloyds, HSBC gain on expected profit boost
  • Officials voted 8-1 to lift borrowing costs by 15 basis points
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WATCH: The BOE could surprise with an interest-rate increase today, Goldman Sachs says.Source: Bloomberg
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Banking stocks jumped in London as Bank of England policymakers voted overwhelmingly to hike interest rates in a move that’s set to boost profits from lending and income earned by investing deposits.

Lloyds Banking Group Plc jumped as much as 6.9%, Barclays Plc rose 5.6%, NatWest Group Plc gained 4.5% and HSBC Holdings Plc rose 3.8%. Personal investing firm Hargreaves Lansdown Plc also advanced. Eight of nine officials voted to lift borrowing costs by 15 basis points to 0.25%, in a move that surprised the majority of economists who anticipated no change.