The Bank of England voted 7-2 to hold Bank Rate at 3.75%, with two members
preferring a hike. Governor Bailey said trying to bring inflation back to 2% too
quickly could cause unnecessary output volatility and that, given weak real
activity and uncertainty over the size and persistence of the energy price
shock, tolerating temporary inflation above target appears appropriate. GBP/USD
fell to 1.3208, a 10-week low, while EUR/GBP hit a three-week high.