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GBP/USD hovers near 1.3500 as BoE dissent vote count climbs

The Bank of England kept Bank Rate at 3.75% on July 30, with the minority hawkish bloc growing from one dissenter in April to three in July ahead of a Sept. 17 meeting.

Reported · Written up by our desk · Major Pairs

GBP/USD traded near 1.3500 on Tuesday, Aug. 11, within a very tight range of roughly 25 pips, with no major British data scheduled to explain either the level or the calm, according to FXStreet.

The driver instead appears to be the outlook for the Bank of England’s next decision. The BoE held Bank Rate at 3.75% on July 30, with the vote split six to three, as minority members pressed for a quarter point more, framing the majority’s stance as a pause rather than a stop.

FXStreet said the hawkish bloc has been expanding at consecutive meetings, rising from a single dissenter in April to two in June and three in July. With the committee set to meet again on Sept. 17, the newsletter notes the “arithmetic” of dissenters has been moving one seat per meeting.

The case for a further quarter point is described as resting more on energy conditions than on domestic demand. FXStreet cited June CPI at 2.6% year over year, with core also at 2.6% and services at 3.6%, alongside oil remaining supported by regional disruptions, while the growth backdrop is expected to keep stalling, including consensus for second-quarter GDP slowing to 0.4% quarter over quarter from 0.6%.

Latest closeGBP/USD 1.351 ▲0.1%

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