30.04.202611:16:07UTC+00Pound Rises Above $1.35 as BoE Holds Rates

The pound climbed back above $1.35, putting it on track for a 2.2% monthly gain against the dollar, after the Bank of England left its Bank Rate unchanged at 3.75% in an 8–1 vote, in line with expectations. The BoE characterized the current level of rates as "reasonable" and reiterated that it "stands ready to act as necessary" to guide CPI inflation back to its 2% medium-term target. It also underscored the risk of second-round inflation effects and vowed to monitor closely any fallout from tensions in the Middle East on global energy supply and prices. The decision came on the heels of the Federal Reserve’s move to keep rates steady, though the Fed’s meeting exposed widening divisions among policymakers, with four officials dissenting—the first such level of disagreement since October 1992. Three of those dissents opposed the Fed’s forward guidance that signaled potential future rate cuts. Meanwhile, as Brent crude reversed earlier gains, easing some inflationary pressure, investors trimmed expectations for further BoE tightening and are now pricing in roughly 70 basis points of additional rate increases.