BoE Holds Rates, Pound Plummets as Fed Hike Takes Toll

The British Pound (GBP) took a hit on Thursday after the Bank of England's (BoE) decision to hold interest rates unchanged at 3.75% in a 6-3 vote.

This move left the door open for a potential hike, and combined with the Federal Reserve's (Fed) raise on Wednesday, capped the GBP/USD advance.

As of writing, the pair is trading at 1.3381, down over 0.23% from its previous value.

The BoE's decision marked a shift in sentiment, as some had expected a rate hike to combat inflation and support the UK economy.