Bank of England leaves rates unchanged at 3.75%, with two policymakers dissenting in favor of a hike, weighing on GBP/USD.
The British Pound (GBP) fell to a two-month low near 1.3200 against the US Dollar (USD) after the Bank of England (BoE) kept interest rates steady at 3.75%. The decision aligned with expectations, though two policymakers voted for a hike.
Earlier data showed UK unemployment dropped to 4.9% in April, beating forecasts, while job creation reached 100K, down from 148K but above the 80K consensus. Wage growth remained strong, with average earnings excluding bonuses steady at 3.4%.
The pound’s decline accelerated as the Federal Reserve’s hawkish hold strengthened the USD, overshadowing the BoE’s upgraded growth forecasts and lower inflation projections.