The Bank of England kept rates steady but a 6-3 vote split surprised markets, weakening the pound against the dollar.
The Bank of England left interest rates unchanged at 3.75%, matching expectations, but the pound fell after a closer-than-expected vote. Six of nine Monetary Policy Committee members backed the hold, while three pushed for a 25 basis point hike.
Analysts had anticipated a 7-2 split in favor of steady rates. The dissenting votes, including from Chief Economist Huw Pill, signaled lingering hawkish pressure. The BoE also warned of persistent energy-driven volatility and potential second-round inflation shocks.
GBP/USD dropped from an intraday high of 1.3405 to near 1.3380, reversing initial gains. The US Dollar Index (DXY) also weakened, trading 0.15% lower at 100.60 amid doubts over further Fed rate hikes.