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GBP/USD holds near 1.3550 after a hawkish Bank of England hearing

GBP/USD stayed near 1.3550 after the BoE held Bank Rate at 3.75%, while markets also weighed an approaching US inflation release and higher UK energy costs.

Reported · Written up by our desk · Major Pairs

FXStreet reports GBP/USD traded just under 1.3550 after a session that spanned about 40 pips and saw the pair return to roughly its starting level.

The Bank of England sent four MPC members to the Treasury Committee, where the testimony was scored as hawkish on the economic calendar, 7.2 versus a 6.0 average, even as the BoE maintained Bank Rate at 3.75%.

The BoE Governor told members inflation risks point upward and that Britain is not close to a recession, while also urging the committee to drop the idea of an unconditional plan to raise rates.

Swaps fully priced a quarter point by December and a second by March 2027, but pricing did not translate into a stronger pound, with FXStreet pointing to concern about further energy price rises linked to the ongoing war that began in February and to the upcoming US inflation print.

Latest closeGBP/USD 1.354 ▼0.0%

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