British Pound Sterling slides after the Bank of England stays put
GBP/USD trades near 1.3350 after a session low at 1.3336, its weakest since the end of July, and it has been under its 200-day average since Wednesday. The Bank of England left Bank Rate at 3.75%, with three of its nine members voting for an increase to 4% and none voting for a cut. That is a committee leaning towards an increase, and Sterling fell anyway. The vote leaned one way and the minutes leaned the other UK consumer price inflation reached 3.1% in August, a five-month high and the first reading above 3% since March, with motor fuel a large part of it. The committee said inflation is likely to rise further over coming quarters, and the Bank‘s own short-term forecast has it above 4% in early 2027. Three members wanted to act on that immediately rather than wait. Committee member Mann, one of the three, pointed at the Bank’s own forecast rather than the current number and argued that raising now is the better route. Governor Bailey put the other side of it in the same document. Indirect energy pass-through has been weaker than the Bank expected, evidence of second-round effects is very limited, domestic inflationary pressure continues to ease and









