Sterling Suffers Worst Week Since May Amid Bank of England Rate Hold

The British pound is experiencing its worst week since May, falling close to $1.33 against the US dollar due to the Bank of England's decision not to raise interest rates.

This move comes as a contrast to other major central banks such as the European Central Bank and the Federal Reserve, which have raised rates in recent days to combat inflation.

Despite concerns about inflation due to the Iran war and soaring energy prices, the Bank of England held its interest rate at 3.75%, citing a finely balanced outlook according to analysts at Morgan Stanley.

The bank's governor, Andrew Bailey, also paused the sale of UK bonds through quantitative tightening, helping to bring down borrowing costs on the bond markets.