The Bank of England raised interest rates by 25 basis points to 4% as scheduled. The pound recovered its previous decline against the US dollar, and British treasury bonds declined slightly. Central Bank Governor Andrew Bailey warned that unless the Iran conflict is resolved, this rate hike will probably not be the last; Kathryn Mann supports a larger 50 basis point rate hike. GBP/USD is flat at $1.3471. UK 10-year Treasury yields rose 1 basis point to 5.14%, while 2-year Treasury yields rose 2 basis points. The money market raised expectations of interest rate hikes further, and the probability that the price will raise interest rates in December is 50%.

The Bank of England raised interest rates by 25 basis points to 4% as scheduled. The pound recovered its previous decline against the US dollar, and British treasury bonds declined slightly. Central Bank Governor Andrew Bailey warned that unless the Iran conflict is resolved, this rate hike will probably not be the last; Kathryn Mann supports a larger 50 basis point rate hike. GBP/USD is flat at $1.3471. UK 10-year Treasury yields rose 1 basis point to 5.14%, while 2-year Treasury yields rose 2 basis points. The money market raised expectations of interest rate hikes further, and the probability that the price will raise interest rates in December is 50%.