The FTSE 250 recorded its worst daily performance since the UK voted to leave the European Union, after the Bank of England (BoE) highlighted a tougher UK economic outlook while its policymakers were divided over whether to raise rates this month.
The bank's decision to maintain rates at 0.25% was backed by five MPC members. However, three voted for a rate hike to combat rising inflation, which was two more than expected. On the news, the domestically-focused FTSE 250 fell 2.1% to 19,554 points. According to the Financial Times, this was its worst one-day decline since July 2016 in the aftermath of the Brexit vote. Meanwhile, the yield on benchmark 10-year gilts rose from 0.95% to 1.03%. Sterling also jumped to almost $1.28 as expectations increased for an interest rate rise, before falling back. The decision by three membe...
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