1558 GMT - Sterling rises after the Bank of England held interest rates in a unanimous decision and suggested rates could rise if energy prices remain elevated. However, sterling's increase has been modest compared to the jump in gilt yields, MUFG analysts Henry Cook and Lee Hardman say in a note. "Higher yields have supported a stronger sterling, but the currency's gains have been muted relative to the scale of the adjustment in rates," they say. Sterling rises to a one-week high of $1.3389, while the euro falls to a 6.5-month low of 0.8610 pounds, LSEG data show. Ten-year gilt yields earlier hit 4.910%, their highest since January 2025, Tradeweb data show. Money markets now fully price two rate hikes in 2026, according to LSEG. (jessica.fleetham@wsj.com)
(END) Dow Jones Newswires
March 19, 2026 11:58 ET (15:58 GMT)
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