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UK Pound Edges Lower After BoE Leaves Rates Unchanged

Published on May 09, 2024 16:54

The British pound extended further decline from a near a one-week low on Thursday after BoE left monetary policy unchanged at 5.25%. Bank of England`s Monetary Policy Committee kept rates unchanged with two members preferring a 0.25 percentage point reduction. The policy summary highlighted that twelve-month CPI inflation fell to 3.2% in March from 3.4% in February. CPI inflation is expected to return to close to the 2% target in the near term, but to increase slightly in the second half of this year, to around 2�%, owing to the unwinding of energy-related base effects. The MPC�s remit is clear that the inflation target applies at all times, reflecting the primacy of price stability in the UK monetary policy framework. The framework recognizes that there will be occasions when inflation will depart from the target as a result of shocks and disturbances. Monetary policy will ensure that CPI inflation returns to the 2% target sustainably in the medium term, the bank noted. Currently, GBPUSD pair is quoting at $1.2458, down 0.32% on the day.

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