Pound Drops After BoE Holds Rate at 3.75% on Cautious Outlook
The British pound fell sharply after the Bank of England kept its key interest rate unchanged at 3.75%, later recovering slightly to trade near 1.3236. The decision was split 7-2, with two members favoring a hike.
The British pound declined sharply following the Bank of England's decision to hold its benchmark interest rate at 3.75%, a move that disappointed some market participants expecting a more hawkish stance. The central bank adopted a cautious outlook on the economy, weighing on sterling sentiment.
The BoE's Monetary Policy Committee voted 7-2 to maintain the current rate, with the dissenting members pushing for a quarter-point increase. After the initial selloff, GBP/USD pared some losses and was last seen trading near 1.3236, according to UOB Global Economics & Markets Research.
Source: FXStreet Forex News