Sterling tumbled and yields on gilts fell on Thursday after the Bank of England surprised markets by opting to extend its quantitative easing programme by £50 billion ($84.4 billion).
The pound fell 0.7% against the dollar to 59.28p and 0.5% against the euro to 85.3p on the back of news the Bank would increase the size of its quantitative easing programme to £175 billion. The yield on the benchmark ten-year government bond fell 15 basis points to 3.67%.
Analysts had largely expected the Bank to
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