That threw a new curveball at UK markets, as just last week economists polled by Reuters had unanimously expected the BoE to raise by 25 basis points.
I would not be surprised if we see a 50-bp rate rise from the Bank of England tomorrow."
Other analysts said delivering a larger rate rise on Thursday risked further undermining the BoE's messaging.
Bets on where BoE rate hikes might peak rose as high as 6% on Wednesday.
The rise in yields hit UK housebuilders (.FTNMX402020), which were down as much as 3.1%.
Persons:
BoE, Melanie Baker, Liz, Nick Rees, Richard McGuire, Rabobank's McGuire, Yoruk Bahceli, William Schomberg, Dhara Ranasinghe, Danilo Masoni, Alun John, Peter Graff
Organizations:
Bank of England, Reuters, Royal London Asset Management, Reuters Graphics Reuters, Wednesday's, MPC, FX, Monex, Rabobank, Sterling, Thomson
Locations:
Monex Europe