The Bank of England raised its main interest rate to 4%, its first increase in more than three years. The Monetary Policy Committee voted 8–1 in favor of the quarter-point hike. The bank warned that inflation could approach 5% due to the repercussions of the war in Iran. Sterling fell against the US dollar as markets awaited the decision and the dollar’s decline halted.
The Bank of England BoE increased interest rates by 25 basis points following an 8-1 vote as policymakers revised inflation projections toward 5%.
Read the full storyThe British Pound declined as markets await the Bank of England's policy announcement, while a stabilizing US Dollar added pressure to the GBP/USD pair.