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.

2026-06-18

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.