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BoE holds Bank Rate at 3.75% after a 6-3 MPC vote

Three MPC members backed a 0.25 percentage point hike to 4%, while GBP/USD slipped to 1.3390, up 0.17% on the day.

Reported · Written up by our desk · Central Banks

Bank of England Governor Andrew Bailey said the MPC maintained the Bank Rate at 3.75% following the July monetary policy meeting, with the decision passed by a 6-3 vote split. The BoE had kept policy unchanged as widely expected.

According to FXStreet, three members voted for a 0.25 percentage point increase to 4%, arguing policy may need to react before persistence risks materialize. The speech emphasis and the split, with Bailey responding to questions from the press, pointed to a moderately hawkish hold amid upside inflation risks tied to the Iran war, AI related demand, and El Nino.

FXStreet also noted that the majority stressed tighter financial conditions, slower GDP growth, and rising unemployment, taking a cautious and data dependent approach that tempered the hawkish tilt. The immediate market reaction saw GBP/USD retreat slightly from session highs and trade around 1.3390, up 0.17% on the day.

Latest closeGBP/USD 1.337 ▲0.6%

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