The pound hit a six-month low. Overview for 22.09.2023

The British pound sterling paired with the US dollar is currently at its six-month low. The current GBPUSD exchange rate stands at 1.2276.

The Bank of England kept the interest rate unchanged at 5.25% per annum at its meeting on Thursday. The decision was unexpected for investors and economists: the main forecast had implied a rise in the rate to 5.50% per annum.

The British regulator believes that this is the most logical decision considering the emerging evidence of a slowdown in the UK economy. In addition, the Central Bank notices signs of slowing inflation.

In the comments, the regulator highlighted that the growth of wages is still noticeable, although the labour market is beginning to show signs of weakening.

The Pound Sterling hit a six-month low in the pairing with the USD.

The BoE's decision to keep the rate unchanged contradicts the stance of other major central banks, putting the pound in an extremely vulnerable position.