Pound Slides Toward $1.32 as BoE Holds Rates

2026-06-18 11:14 By Joana Ferreira 1 min. read

The British pound fell toward $1.32, reaching its lowest level since April 3, after the Bank of England voted 7-2 to maintain interest rates at 3.75%, in line with expectations.

Policymakers adopted a cautious stance, citing uncertainty over the economic impact of the energy shock driven by the Middle East conflict.

The BoE reiterated its readiness to act on inflation, with Governor Andrew Bailey emphasizing that pressures from the Iran conflict persist despite the ceasefire and potential deal.

The Monetary Policy Committee expects inflation to rise later this year as cost increases spread across the economy, though it reduced its peak inflation forecast to 3.25% for Q4 2026, down from 3.6%.

This decision follows the US Federal Reserve’s move to hold rates steady, though nine of its 19 policymakers now expect at least one hike this year.

Meanwhile, investors await the Makerfield by-election results, which could shape Labour’s leadership and economic direction.



News Stream
Pound Slides Toward $1.32 as BoE Holds Rates
The British pound fell toward $1.32, reaching its lowest level since April 3, after the Bank of England voted 7-2 to maintain interest rates at 3.75%, in line with expectations. Policymakers adopted a cautious stance, citing uncertainty over the economic impact of the energy shock driven by the Middle East conflict. The BoE reiterated its readiness to act on inflation, with Governor Andrew Bailey emphasizing that pressures from the Iran conflict persist despite the ceasefire and potential deal. The Monetary Policy Committee expects inflation to rise later this year as cost increases spread across the economy, though it reduced its peak inflation forecast to 3.25% for Q4 2026, down from 3.6%. This decision follows the US Federal Reserve’s move to hold rates steady, though nine of its 19 policymakers now expect at least one hike this year. Meanwhile, investors await the Makerfield by-election results, which could shape Labour’s leadership and economic direction.
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