Bank of England holds at 4.25% - Sterling unmoved

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waterman
Written by Dan Waterman
June 19th 2025
GBP unchanged after the expected no movement from the BoE today, but money markets now firmly predicting a 25bp rate cut in August..

The Monetary Policy Committee (MPC) reiterated today that monetary policy is not on a pre-set path and will maintain a data-dependent and gradual approach to further easing.

The 6-3 vote was a slight surprise (7-2 forecast) and therefore seen as a 'dovish' move. The usual mentions of inflation, GDP, jobs, wages and energy were the reasons for the majority vote with the conflict in the Middle East too raising concerns. 

The Pound's reaction to the data has been muted so far, but overall remains under pressure due to both domestic and geopolitical concerns.

Just 2-weeks ago, GBP v EUR was sitting above 2025's average and now it is trading at one of the worst times since August last year. This is the market i'm afraid people..

Last night the Fed held their interest rate for the fourth consecutive time, supporting the USD, which is further being supported as a safe-haven by growing concerns that the US will be joining Israel in attacking Iran.