Sterling rose half a U.S. cent and hit the day's high on the euro on Wednesday after the Bank of England's minutes showed policy-setting members voted 9-0 to hike interest rates by 25 basis points this month. The minutes also showed a 50 basis point rate hike was discussed although arguments for a smaller increase were "decisive".
"It does appear that they did talk about 50 basis points in some detail. That is providing sterling with some support." said Ian Stannard, currency strategist at BNP Paribas. "The market is now assessing the fact that the Bank of England were actively discussing the idea of getting even more aggressive than the 25 that was delivered." By 0840 GMT sterling had risen to $1.7821 , up three quarters of a percent on the day. Against the euro it reversed earlier losses to stand at 67.40 pence per euro .|||