Pound Falls Ahead of BoE Rate Decision Amid Ongoing Inflation Pressures

The British pound is facing pressure ahead of the Bank of England's (BoE) highly anticipated policy announcement, trading at its weakest level since late July around $1.34.

No change in interest rates is expected from the BoE today, but investors will be closely watching for any signals about the future path of policy, with a November hike still priced in albeit with less conviction as oil prices retreat for a second consecutive session.

The Federal Reserve raised interest rates by 25 basis points yesterday, its first increase since July 2023, and signaled another hike later this year as policymakers continue to grapple with persistent inflation pressures.