BoE Rate Decision Dovishly Directed

The Bank of England (BoE) kept its key interest rate at 3.75% despite a hawkish vote split, with three members favoring a rate hike.

Investors focused on dovish statements from the BoE and scaled back their bets on further monetary tightening to just 38 basis points by year-end.

The BoE's decision was in line with expectations, but the pound sterling weakened due to the balanced statement and conviction among some committee members that policy is sufficiently restrictive.