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Pound slides to weakest level since late June as BoE hike doubts grow

GBP/USD dropped to 1.3200 on Tuesday, after an external BoE voter said energy prices alone do not justify further rate rises.

Reported · Written up by our desk · Major Pairs

The British pound weakened to its lowest level since late June, with GBP/USD falling to 1.3200 on Tuesday, FXStreet reports.

The move followed comments from Bank of England external member Taylor, a hold voter in the September 17 decision to keep Bank Rate at 3.75%, who said energy prices alone are not enough to support higher rates.

Taylor added that a case for another hike depends on whether energy prices remain high for an extended period and feed into broader inflation, pointing to the BoE agents' survey of firms' pay plans due in January as evidence.

FXStreet also notes that the BoE has meetings scheduled for November 5 and December 17, while the same day the government removes VAT from household electricity bills, Ofgem increases the energy price cap, keeping the typical energy bill rising.

Latest closeGBP/USD 1.325 ▲0.1%

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