Market News
Dovish BoE dents buoyant sterling but soothes battered gilts - REUTERS
By Harry Robertson and Naomi Rovnick
- BoE holds rates but policy split widens
- February rate cut now looks more likely - analysts
- Short-dated gilts win reprieve from dovish tone
LONDON, Dec 19 (Reuters) - A dovish message from the Bank of England on Thursday dented the outlook for sterling, one of the year's best performing major currencies against the dollar, while bringing a reprieve to Britain's battered government bond markets.
The pound slipped and two-year gilt yields pulled back from seven-month peaks after the BoE held its key interest rate at 4.75%, as expected, but three policymakers voted to lower borrowing costs.
