Sterling slid to a 12-week low as the Bank of England's cautious stance on further tightening contrasted with ongoing Fed tightening. The Federal Reserve last week raised rates 25bps and signalled at least one more hike this year, supporting the dollar; the BoE held rates and avoided clear guidance on future hikes. UK PMI also missed expectations. GBP/USD fell as much as 0.6% to 1.3260.

2026-09-23

Sterling slid to a 12-week low as the Bank of England's cautious stance on further tightening contrasted with ongoing Fed tightening. The Federal Reserve last week raised rates 25bps and signalled at least one more hike this year, supporting the dollar; the BoE held rates and avoided clear guidance on future hikes. UK PMI also missed expectations. GBP/USD fell as much as 0.6% to 1.3260.