British pound drops after BoE hikes rates by 0.25% By Reuters
© Reuters. FILE PHOTO: British five pound banknotes are seen in this picture illustration taken November 14, 2017. REUTERS/Benoit Tessier/Illustration/
LONDON (Reuters) – The British pound reversed its earlier gains and fell on Thursday, as investors interpreted a Bank of England 8-1 vote in favour of raising interest rates by 0.25% to be a more dovish tightening than expected.
The pound was last down 0.3% at $1.3096, the day’s low, after trading as high as $1.3211 before the BoE announced its decision to raise rates to 0.75%. Against the euro sterling weakened 0.4% to 84.36 pence. It had traded at 83.68 pence before the announcement.
British shares ticked up, with the exporter-heavy gaining 0.4%.
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