LONDON: Sterling rose to a six-day high against the dollar on Thursday after Bank of England policymakers voted unanimously to keep interest rates on hold, pouring cold water on talk that one or two might vote in favour of a cut.
The pound also rose to its strongest in nine days against the euro, hitting 78.50 pence, up from 78.83 pence before the BoE releases and up around 0.7 percent on the day. Against the dollar it rose by a third of a percent to $1.4498.
"(There was) some expectation for one or two members voting for a cut in rates (and) added into the mix a market very hedged up and short sterling in preparation for a Brexit," said Mizuho's head of hedge fund sales in London, Neil Jones.
"No downside surprises here from Carney, the dovish rhetoric is very much anticipated. Sterling will probably trade gently higher."
In a quarterly inflation report published at the same time, the BoE stepped up its warnings about the economic risks if Britain votes to leave the European Union, saying sterling could fall sharply and unemployment would probably rise.
There was little reaction from British government bonds. Long gilt futures briefly edged down to a new session low of 121.22, down 30 ticks on the day, before rebounding back to 121.30.
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