Pound surges as interest rate cut expectations fade

Sterling rose to $1.30, a one-year high, as traders reduced likelihood of a BoE rate cut from 50% to 25% due to inflation meeting targets.

UK government bond yields rose as traders reacted by selling bonds, indicating a stronger pound and increased borrowing costs due to interest rate expectations.

Despite stable services inflation, declining goods prices and improved economic growth may lead the MPC to reconsider interest rate cuts for the UK economy.

Read at Business Matters