Currencies
Gilts Jump, Pound Drops as BOE Vote Fuels Bets on March Cut
“The decision was much closer than expected, with a solid dovish minority’.
Photographer: Betty Laura Zapata/BloombergUK benchmark bonds reversed losses and the pound fell after Bank of England policymakers came unexpectedly close to cutting interest rates, prompting traders to bet on further monetary easing.
The yield on 10-year gilts dropped to 4.53% after the central bank announced a 5-4 split among rate-setters in favor of keeping the BOE’s key rate unchanged at 3.75%. The majority of economists polled by Bloomberg anticipated a 7-2 outcome.