Sterling falls to day's low, gilt yields tumble as BoE signals rates near peak

LONDON, Feb 2 (Reuters) - Britain's pound and gilt yields fell on Thursday after the Bank of England raised its main interest rate by 50 basis points to its highest since 2008 but dropped its pledge to keep increasing rates "forcefully". Sterling initially strengthened after the announcement, with markets split on whether the central bank would opt for a smaller 25 bps rate rise.

It then lost its shine as markets digested the commentary and the central bank signalled rates were near their peak.

The pound was last down 0.7% at $1.2295 having hit a session low of $1.2276. The euro rose 0.6% against the pound to 89.32 pence. The FTSE 100 ticked lower shortly after policy announcement. It was last trading at the same levels where it was before the BoE decision, up 0.55%. Britain's 10-year bond yield initially spiked but then fell below levels seen before the decision, and was last down 15 basis points to 3.156%. Yields move inversely to prices.
(Reporting by the London Markets team, writing by Samuel Indyk; editing by Dhara Ranasinghe)

Reuters

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

off-the-wire

Sterling falls to day's low, gilt yields tumble as BoE signals rates near peak

By Reuters

Reuters

Reuters

Gold is never going back to $2,000: 'That's history,' prices to 3x from here – Peter Schiff

‘Biggest economic shift since Nixon’: Major U.S. monetary policy changes coming in 12-36 months – Jack Mallers

Solid price gains for gold, silver after busy news weekend

India joins South Africa in denying BRICS currency plans after Trump’s 100% tariff threat

Silver prices breach $32/oz as bullish technicals and fundamentals suggest potential breakout

off-the-wire

Sterling falls to day&apos;s low, gilt yields tumble as BoE signals rates near peak

By Reuters

Reuters

Reuters

Sterling falls to day's low, gilt yields tumble as BoE signals rates near peak