After the Bank of England kept interest rates unchanged, the pound maintained its upward momentum.

The Bank of England has decided to keep interest rates unchanged at 3.75% with a vote of 8 to 1, in line with market expectations. Following the decision, the pound continued to rise against the euro and the dollar. Huw Pill, Chief Economist at the Bank of England, was the only dissenter, leaning towards a 25 basis point hike. The Bank of England stated that the Iran war has led to an increase in energy prices, posing a risk of significant second-round effects on prices and wages. However, the bank also noted that the cooling labor market and economic weakness could mitigate inflationary pressures. After the announcement, the pound rose by 0.3% to 1.3515 against the US dollar, compared to 1.3527 before the decision. The euro fell by 0.1% against the pound to 0.8658, remaining largely unchanged from before the decision was made.