GBP/USD Stagnant as Higher Inflation Fails to Lift Pound Ahead of Fed Decision

The GBP/USD exchange rate remained near a five-week low on September 16, as higher UK inflation failed to boost the Pound ahead of the Federal Reserve's interest rate decision.

UK consumer price inflation accelerated from 2.9% to 3.1% in August, driven primarily by higher energy costs and petrol prices, but core inflation held at 2.6% for a fourth consecutive month.

The Bank of England is widely expected to keep interest rates unchanged on Thursday, with markets seeing only around a 20% chance of an immediate hike.