The Bank of England raised interest rates and was reported to have struck a more hawkish tone than expected. Markets are pricing in another rate hike in December while watching developments ahead.
The Bank of England released the results of its Monetary Policy Committee meeting and raised interest rates. Although the rate hike itself was expected, the market was reported to have viewed the tone as more hawkish than anticipated.
Sterling continued to trend lower during New York trading, with GBP/USD trading in the low 1.34 range. Meanwhile, sterling-yen fell to the 212 range.
In short-term money markets, expectations of another rate hike in December have spread, with the probability increasingly priced in at around 55%.