The Bank of England's (BOE's) monetary policy committee didn't miss an opportunity to surprise with a triply hawkish move on Thursday. Not only did it lift the bank rate to 0.5 percent, as was widely expected, but four of the nine members voted for a double rate hike of 50 basis points (bps).

The pound rose initially against the euro but swung weaker after a more hawkish European Central Bank (ECB) meeting. Two-year gilt yields jumped 16 bps with a slightly smaller gain further out the curve. Sterling money markets are fully pricing in a 25 bps hike at both of the next two meetings, projecting official rates as high as 1.5 percent by yearend, triple their current level.