BoE Holds Rates, Pound Weakens Amid Fed Tightening

The British Pound (GBP) continues its downward trend after the Bank of England's (BoE) decision to keep interest rates unchanged at 3.75% in a 6-3 vote.

Three members of the Monetary Policy Committee, including BoE's Greene and Mann, voted for a 25-basis-point rate hike, echoing their previous stance.

The BoE also reduced UK bond (Gilt) purchases and planned annual Gilt sales of up to £20 billion.

In its statement, the BoE emphasized it is prepared to act if inflation targets are not met, citing upside risks to inflation and a potential energy shock.