The Bank of England on Thursday sowed confusion in the gilts markets, announcing that it would suspend its £125bn asset purchase programme, at least for now, but offering no clue to its future thinking.

The statement followed the monthly meeting of the Bank’s monetary policy committee and took economists and markets by surprise. Ten-year gilt yields registered one of their biggest one-day jumps of the year, closing 18 basis points higher at 3.80 per cent. Sterling also bounced 1.1 per cent against the dollar and posted gains against the euro and yen.