FX.co ★ Pound Holds at $1.34 as BoE Stands Pat

The British pound stabilised around $1.34 following the Bank of England's decision to maintain interest rates, set against a backdrop of ongoing inflation, escalating geopolitical tensions, and possible disruptions from proposed US tariffs. Notably, the decision was marked by a lack of unanimity: six members of the Monetary Policy Committee voted to hold rates steady, while three advocated for a 25 basis point reduction, defying the anticipated 7–2 vote split. The Bank cautioned about the "two-sided risks to inflation," suggesting that while price growth is expected to stay relatively constant for the rest of the year, it may ease back towards the target by 2026. Concurrently, the US dollar strengthened, buoyed by safe-haven demand amid the ongoing Israel-Iran conflict and the Federal Reserve's choice to keep rates unchanged. Fed Chair Jerome Powell also indicated upcoming inflationary pressures, partly due to newly proposed tariffs by the Trump administration.