LONDON: Sterling regained ground on Thursday after Bank of England policymakers voted 9-0 to keep interest rates at a record low of 0.5 percent, quashing speculation ahead of the meeting that one or more members could vote to cut rates.
The bank did point to the risks to the economy from a referendum on a EU membership in June but it also hinted that sterling might be expected to recover if Britain votes to stay in the bloc.
A tweet by Sky TV Economics Editor Ed Conway just over an hour before the vote had suggested two members of the Monetary Policy Council were "on the verge" of voting for a reduction in rates, weakening the pound.
It bounced back to $1.4161 in the minutes after the decision was published, still down a third of a percent on the day but well above early morning lows. Against the euro it traded just 0.25 percent lower at 79.59 pence.
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