GBP/USD Bounces Up 80 Pips As 2 BOE Policy Makers Want An Interest Rate Increase

Today was MPC Official Bank Rate Votes meeting at BOE. 2 members wanted an interest rate increase that made GBP/USD bounce up slightly by 80 pips. Sterling gained versus all of its 16 major peers after minutes of the BOE’s Aug. 6-7 meeting showed Martin Weale and Ian McCafferty voted to raise the benchmark rate by 25 basis points from a record-low 0.5 percent. Eleven of 18 analysts in a Bloomberg News survey had predicted a unanimous vote to keep borrowing costs unchanged. Short-sterling futures contracts fell and U.K. government bonds dropped as investors raised bets that borrowing costs will increase.

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