The British pound fell below $1.26, hovering near a one-month low after missing the modest rebound in other G10 currencies.
Pound slips below $1.26 on BoE dovish signals
This came amid dovish signals from the Bank of England following its latest policy decision. As expected, the BoE kept its Bank Rate steady at 4.75%. Still, three Monetary Policy Committee members unexpectedly voted for a rate cut, contrasting with expectations of a more unified stance to hold rates. The tilt toward looser monetary policy aligned with the Bank’s statement that recent economic activity indicators have weakened, prompting the MPC to anticipate Q4 GDP falling short of previous forecasts.
UK inflation stays high as Fed signals fewer rate cuts
According to the latest data, this came despite persistent inflationary pressures in the UK, with services price growth holding steady at 5%. Meanwhile, the Federal Reserve’s rate cut earlier this week was accompanied by hawkish signals, projecting fewer cuts next year, which drove sharp losses across G10 currencies.
