Few predicted that the Bank of England would increase its key repo rate by 25 basis points to 4.75% at its regular monetary policy committee meeting on August 3. So it was no surprise that cable caught a very strong bid in the immediate aftermath of the decision. As the news was released at midday, cable moved up sharply from around 1.8725 to 1.8830.
A combination of factors appears to have come together and convinced many market players that the MPC’s decision was leaked in advance.
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