Pound Plummets 1% on BoE Decision

Governer of BoE, Mark Carney

The Sterling has fallen sharply, quickly reversing initial gains after the BoE raised interest rates by +0.25 bps to +0.5%, as expected, but said future rate rises would be “at a gradual pace and to a limited extent.”

The BoE also warned on Brexit uncertainty, saying it was “having a noticeable impact on the economic outlook.”

GBP/USD has fallen as much as -1%, last down at £1.3124, compared with £1.3269 before the decision. EUR/GBP last up +1.23% at €0.8885, compared with around €0.8811 beforehand.

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