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| Version 2 | Version 3 |
|---|---|
| Pound volatile after surprise Bank vote | Pound volatile after surprise Bank vote |
| (about 17 hours later) | |
| Sterling surged by almost a cent against the dollar after three Bank of England rate-setters voted for a rise in UK interest rates. | Sterling surged by almost a cent against the dollar after three Bank of England rate-setters voted for a rise in UK interest rates. |
| The Bank kept its key interest rate at 0.25%, as expected, but the 5-3 split among policymakers was the closest vote for a rate rise since 2007. | The Bank kept its key interest rate at 0.25%, as expected, but the 5-3 split among policymakers was the closest vote for a rate rise since 2007. |
| The pound was boosted as the vote raised the possibility of rates rising earlier than had been expected. | The pound was boosted as the vote raised the possibility of rates rising earlier than had been expected. |
| Sterling hit $1.2795 at one point, but then fell back to $1.2759. | Sterling hit $1.2795 at one point, but then fell back to $1.2759. |
| However, it held on to gains against the euro, standing 0.7% higher at 1.1448 euros. | However, it held on to gains against the euro, standing 0.7% higher at 1.1448 euros. |
| Minutes from the Bank of England's latest meeting showed that Monetary Policy Committee members Ian McCafferty and Michael Saunders had joined Kristin Forbes in voting for a rate rise. | Minutes from the Bank of England's latest meeting showed that Monetary Policy Committee members Ian McCafferty and Michael Saunders had joined Kristin Forbes in voting for a rate rise. |
| However, some analysts judged that the possibility of an early rate rise was still distant, despite the closeness of this month's vote. | However, some analysts judged that the possibility of an early rate rise was still distant, despite the closeness of this month's vote. |
| "We continue to think that a majority of MPC members will vote to keep interest rates on hold this year," said Samuel Tombs, chief UK economist at Pantheon Macroeconomics. | "We continue to think that a majority of MPC members will vote to keep interest rates on hold this year," said Samuel Tombs, chief UK economist at Pantheon Macroeconomics. |
| "This was Kristin Forbes' last meeting, so the number of hawks likely will decline at the next meeting in August." | "This was Kristin Forbes' last meeting, so the number of hawks likely will decline at the next meeting in August." |
| On the stock market, news of the Bank's decision pushed the FTSE 100 share index down. | |
| At the close the index was down 55.04 points, or 0.74%, at 7,419.36. | |
| The FTSE 100 often moves inversely to the pound as many of the firms in the index have significant earnings overseas, and a stronger pound means these profits are worth less when converted back into sterling. | The FTSE 100 often moves inversely to the pound as many of the firms in the index have significant earnings overseas, and a stronger pound means these profits are worth less when converted back into sterling. |