Sterling soared to its highest level in two and a half years against the US dollar after the Bank of England held its interest rate steady, diverging from the Federal Reserve’s substantial rate cut. V

According to Scotiabank’s chief FX strategist Shaun Osborne; “A 1/4-point cut is likely to be accompanied by a dovish-leaning policy statement. A 1/2-point cut may see more measured forward-looking messaging.”

The British pound rose against the dollar on Wednesday after UK inflation data boosted the market view that the Bank of England will keep interest rates steady on Thursday, in contrast with an expected start to the U.