Sterling inches up, gilts erase gains after BoE stays on hold

LONDON: Sterling pared losses against the dollar while gilts erased gains on Thursday after the Bank of England kept rates and refrained from pumping in additional stimulus into the economy.

Sterling rose as traders said some market players had priced in a small chance more easing. The pound rose to $1.5084 from $1.5054 before the decision, paring earlier losses, though it was still down 0.3 percent on the day, with Middle East accounts cited as main sellers of sterling.

The euro dipped to 84.90 pence from 85.05 pence beforehand and was last flat on the day.

June gilt futures erased modest gains after the announcement and were last 4 ticks down on the day at 118.90, having stood at 119.04 just beforehand.