Sterling Bounces Back as Bank of England Keeps Interest Rates Unchanged

The British pound attempted to recover from its seven-week low against the US dollar on Friday, rising 0.15% to $1.3376.

This move came after the Bank of England kept its benchmark interest rate unchanged at 3.75%, marking the sixth consecutive meeting with no change.

The Bank's decision was in line with expectations, and its Monetary Policy Committee voted 6-3 in favor of keeping rates unchanged.

Bank of England Governor Andrew Bailey noted that inflation risks have become more tilted to the upside due to higher energy prices, but emphasized that the pass-through of those increases into domestic prices and wages has remained limited.