The British pound rose after the Bank of England maintained interest rates
The Bank’s Monetary Policy Committee (MPC) voted by a decisive 8:1 majority to maintain rates, indicating that more and more Bank members are becoming increasingly concerned about rising inflation since February.
Given that inflation will reach 4.0% in the coming months, there are concerns that current forecasts of a gradual decline in inflation in 2026 to the target of 2.0% will not be justified.
“Although inflation is expected to decline after this, the Committee will closely monitor any subsequent signs of more sustained inflationary pressures,” the Bank said in a statement.
After the policy update, the pound-euro exchange rate continued its daily rise to 1.1965 (+0.30%).
