Pound Hits Mid-February High

2026-05-01 07:48 By Joana Ferreira 1 min. read

The pound climbed to $1.36 in early May, reaching its highest level since mid-February, as investors digested the Bank of England’s latest policy decision and a fresh surge in oil prices driven by Middle East tensions.

The BoE’s Monetary Policy Committee voted 8-1 to maintain Bank Rate at 3.75%, with Chief Economist Huw Pill the sole dissenter, advocating for a 25-basis-point hike.

Governor Andrew Bailey characterized the decision as an “active hold,” stressing the need to monitor whether energy price shocks will persist amid a softer economic backdrop.

Meanwhile, oil prices continued their upward trend, following US President Donald Trump’s insistence on maintaining a naval blockade of Iranian ports, raising concerns that the Strait of Hormuz may remain closed for the foreseeable future.

Investors also turned their attention to Britain’s upcoming municipal elections on Thursday, with polls indicating a potential significant setback for Prime Minister Keir Starmer’s Labour Party.



News Stream
Pound Hits Mid-February High
The pound climbed to $1.36 in early May, reaching its highest level since mid-February, as investors digested the Bank of England’s latest policy decision and a fresh surge in oil prices driven by Middle East tensions. The BoE’s Monetary Policy Committee voted 8-1 to maintain Bank Rate at 3.75%, with Chief Economist Huw Pill the sole dissenter, advocating for a 25-basis-point hike. Governor Andrew Bailey characterized the decision as an “active hold,” stressing the need to monitor whether energy price shocks will persist amid a softer economic backdrop. Meanwhile, oil prices continued their upward trend, following US President Donald Trump’s insistence on maintaining a naval blockade of Iranian ports, raising concerns that the Strait of Hormuz may remain closed for the foreseeable future. Investors also turned their attention to Britain’s upcoming municipal elections on Thursday, with polls indicating a potential significant setback for Prime Minister Keir Starmer’s Labour Party.
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