Pound Falls After BoE Leaves Interest Rates Unchanged, Despite Calls for Hike

The British Pound (GBP) plummeted against its peers following the Bank of England's (BoE) decision to leave interest rates unchanged at 3.75% for the sixth meeting in a row with a 6-3 vote split.

Three out of nine Monetary Policy Committee (MPC) members - Megan Greene, Catherine L Mann, and Huw Pill - voted for a 25 basis points hike to push policy rates to 4%, but were outvoted.

BoE Governor Andrew Bailey warned that risks to inflation remain to the upside and that the central bank might consider tightening the policy if 'conflict in Middle East persists for extended period, as appears likely, and if risk of second-round effects increases'.