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Pound Falls, Gilts Mixed After BOE Accelerates Rate-Hike Drive
The pound edged lower and longer-maturity UK bonds rallied after the Bank of England accelerated its tightening drive again in the face of sticker-than-expected inflation. Sterling failed to hold on to kneejerk gains after officials voted to raise rates by a half percentage point, quickening their pace from quarter-point increases at recent meetings. The pound traded down 0.1% at $1.2763, while shorter-maturity UK bonds were little changed as 10-year gilts rallied. “Ultimately this could lower the odds of more hikes needed later this year and with it see sterling strength limited, given just how much was already ... (full story)