off-the-wire

Pound trims losses, FTSE turns lower after BoE raises rates

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, May 11 (Reuters) - The British pound trimmed losses against the dollar and gilt yields rose off session lows on Thursday after the Bank of England raised interest rates for the 12th consecutive meeting in its attempt to fight surging inflation. As expected, the BoE raised rates by a quarter of a percentage point to 4.5%, taking borrowing costs to their highest since 2008, and now expects inflation to fall slower than previously hoped.


Sterling , which had been around 0.5% lower against the dollar prior to the decision, trimmed losses against the greenback. It was last down 0.2% at $1.2599.


It reached a fresh five-month high against the euro at
86.62 pence. Britain's 2-year government bond yield - which is sensitive to changes in interest rate expectations - cut some of an earlier fall and was last down 3 basis points on the day at 3.79%.


The 10-year yield was last down 3 basis points at 3.77%.


The blue-chip FTSE 100 turned negative and was last down 0.3%, The domestically focussed FTSE 250 also declined to a session low and was down 0.2%. An index of Britain's banks extended losses and was last down 1.1%.
(Reporting by Samuel Indyk; editing by Yoruk Bahceli)

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.