The Bank of England’s decision to maintain interest rates at 5.25% weighs on the pound, pushing GBP/USD to its lowest level since early June.
The British pound fell to a two-month low against the US dollar, trading below 1.3220 after the Bank of England (BoE) kept interest rates unchanged at 5.25%. The decision disappointed investors expecting a potential cut amid easing inflation pressures.
Prior to the announcement, GBP/USD had traded near 1.3250, with markets pricing in a slim chance of a rate reduction. The BoE’s stance contrasts with recent dovish signals from other major central banks, including the Federal Reserve.
The move extends the pound’s decline, marking its weakest level since early June, as traders reassess the UK’s monetary policy outlook.