Sterling rises after BoE announcement, gilts cut gains

LONDON: Sterling rose to a session high against the US dollar while gilts reversed gains on Thursday after the Bank of England announced fresh quantitative easing of 50 billion pounds, as expected, quashing market talk of more aggressive stimulus.

Sterling rose to a high of $1.5872 from around $1.5830 before the announcement with the BoE's comment that recent business surveys paint a more positive picture of the UK also helping.

The euro fell to a session low against sterling, dropping to 83.50 pence from around 83.745.

The March gilt future reversed gains and was last 30 ticks down on the day, having stood 28 ticks up beforehand.