Fed boss Jerome Powell described Wednesday's outsize half-point interest rate cut as a 'recalibration' rather than some panicky emergency, and investors are taking the move as a sign the Fed will seek that new 'neutral' quickly without necessarily being forced into it by a weakening economy.

The pound rose to its highest level in more than two years after the Bank of England held interest rates steady and said it won’t rush to ease policy.

The Bank of England (BoE) has decided to hold interest rates at 5% this month, having lowered them for the first time in four years in August.