U.K. Financial Watchdog Examining Pound Jump Before BOE Call
- Trading volumes climb in minute before rate announcement
- Move in pound before decision drew gasps on trading floor
Photographer: Chris J. Ratcliffe/Bloomberg
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The U.K. Financial Conduct Authority said it’s examining the spike in the British pound about 15 seconds before Thursday’s Bank of England’s interest-rate decision.
Sterling shot up toward $1.31 just before BOE officials surprised markets by announcing that they had voted 7-2 for no change to policy, even though many analysts and investors had expected a closer decision or a rate cut. The move prompted traders and analysts to wonder if there had been a leak.