Pound Sterling Price News and Forecast: GBP hit by BoE hold and cautious outlook

British Pound: Pound hit by BoE hold and cautious outlook – UOB

UOB Global Economics & Markets Research reports that GBP/USD fell sharply after the Bank of England left rates unchanged at 3.75%, before trimming losses to trade near 1.3236. The BOE decision saw a 7–2 vote, with two members preferring a hike to 4.00%. UK labour data showed slightly lower unemployment and still-firm wage growth, complicating the policy outlook.

"The Bank of England (BOE) held the Bank rate unchanged at 3.75% on Thu, as policymakers continue to balance the need to address above-target inflation with lackluster economic growth. The decision to hold was backed by seven of the nine Monetary Policy Committee (MPC) members at the May meeting. BOE chief economist Huw Pill and Megan Greene, an external member of the rates-setting MPC, were the two dissenting voices, casting votes to hike the BOE’s “base rate” by 25 bps to 4.00%." Read more...

1.2%: British Pound remains subdued after UK Retail Sales beat forecasts

GBP/USD remains subdued for the third successive day, trading around 1.3190 during the early European hours on Friday. The British Pound (GBP) pares its daily losses against the US Dollar (USD) but remains in negative territory following the release of key economic data from the United Kingdom (UK).

The Office for National Statistics (ONS) released data on Friday, indicating that UK Retail Sales climbed 1.2% month-over-month (MoM) in May after falling by a revised 1.0% in April. The market forecast was for a rise of 0.5% in the reported month. The core Retail Sales rose by 1.2% MoM in May, compared with the previous decrease of 0.1% (revised from -0.4%) and the estimated 0.4% increase figure. Read more...