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Bank of England holds Bank Rate at 3.75%, GBP/USD pushes higher

After the BoE decision, GBP/USD climbed beyond 1.3450 to fresh multi-week highs as US Q2 GDP came in below expectations.

Reported · Written up by our desk · Central Banks

The Bank of England kept its benchmark Bank Rate unchanged at 3.75%, with the Monetary Policy Committee voting 6-3 to hold, according to TD Securities strategists cited by FXStreet. The decision signals slightly more hawkish rhetoric than before, while TD Securities said policymakers remain comfortable with existing tightening.

In the July Monetary Policy Report, the outlook for inflation and growth was described as more benign, but risks are still skewed to the upside. TD Securities continues to expect rates to stay on hold through September, with an easing cycle starting in the first half of 2027.

FXStreet said GBP/USD advanced after the BoE decision, moving beyond 1.3450 and trading at fresh multi-week highs. The pair’s momentum was tied to a weaker US dollar and US Q2 GDP coming in below expectations.

FXStreet noted that the US preliminary estimate showed GDP growing at an annual rate of 1.5% in Q2, below the 2.1% expected, with the dollar losing ground across the FX board. The report also referenced additional pressure on the dollar from a suspected JPY intervention and recent uncertainty after the Federal Reserve kept rates on hold with a split vote.

Latest closeGBP/USD 1.337 ▲0.6%

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