British Pound Plunges as Interest Rates Remain Unchanged

The British Pound (GBP) has been under pressure since last month's rejection from major resistance. As of this week, the decline in GBP/USD is showing no signs of slowing down and is now heading for its biggest weekly drop since May.

Last month's meeting of the Monetary Policy Committee (MPC) ended on September 16th with a 6-3 majority vote to maintain Bank Rate at 3.75%. Three members voted to increase Bank Rate by 0.25 percentage points, to 4%.

The MPC is keeping its main interest rate unchanged despite higher inflation, which rose to 3.1% in August and is expected to rise further over the coming quarters due to increased energy prices.