LONDON (Reuters) – The pound slipped on Thursday after the Bank of England held interest rates but three policymakers voted to lower borrowing costs, denting a rebound against the dollar as markets swung in the wake of the Federal Reserve’s decision on Wednesday.
Britain’s 10-year government bond yield fell and was last up 1 basis point at 4.569%, from 4.598% before the decision.
The BoE held rates at 4.75%.
The U.S. Fed cut interest rates on Wednesday but policymakers said they now envisage fewer rate cuts next year, sending the dollar surging and the pound down more than 1%.
British bond yields rose on Thursday before the BoE decision, reflecting a jump in U.S.
government yields overnight. Yields move inversely to prices.
The UK’s FTSE 100 was last down 1.1%, having traded around 1.4% lower before the BoE’s announcement, after a sharp sell-off in U.S.
stocks on Wednesday.
(Reporting by Harry Robertson)
