The pound and British government bond yields dropped slightly on Thursday while stocks rose after the Bank of England raised interest rates by 25 basis points.
Market expectations prior to the meeting were almost evenly split between a 25 and 50 basis point increase.
The pound traded as much as 0.66% down on the day, hitting a fresh one month low, after the decision. It then pared losses to be at $1.2658, 0.4% lower, largely where it was before the decision.
British government bond yields dipped. The benchmark 10 year gilt yield, which had been higher ahead of the decision, was flat at 4.4%, and the rate-sensitive two year yield was down 8 basis points at 4.91%.
The FTSE250 (.FTMC) index of British midcap stocks was last up 0.3% and the FTSE 100 (.FTSE) pared loses and was down 0.6%.
Source : Reuters
