Bank of England Holds Rates Steady as Pound Falls

The British Pound Sterling slid after the Bank of England's decision to keep interest rates at 3.75%.

The three members who voted for an increase to 4% were outweighed by Governor Andrew Bailey, who argued that indirect energy pass-through has been weaker than expected and domestic inflationary pressure continues to ease.

UK consumer price inflation reached a five-month high of 3.1% in August, and the Bank's own forecast suggests it will rise further over coming quarters.

The market puts 74% odds on a quarter-point increase at the November 5 meeting, with Bank Rate expected to reach 4.18% by year-end.