The Bank of England (BoE) left policy rates unchanged by a vote of 6 to 3. The Pound extends its gains after the “Old Lady” maintained a hawkish tone in the statement. TD Securities economists analyze the outlook for the British pound.
Relative interest rate differentials may support the GBP against the currencies of the more dovish G10 central banks.
The Bank of England kept rates unchanged, as expected, but with a hawkish tone, maintaining language around a restrictive bias. The statement reflects a longer rise along with concerns about service sector inflation and wage growth. This is supporting the Pound, especially as it contrasts with the Fed’s dovish stance. Relative interest rate differentials may support the GBP against the currencies of the more dovish G10 central banks.
The decline in the USD will lift all pairs, including the GBP, but we expect it to lag behind its emerging counterparts and the JPY.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.