Pound Soars as Rates Hold
GBP/USD has continued its five-day rally and held near 1.3500, trading around 1.3480 during Thursday's Asian session. The pound's strength was driven by the Bank of England's (BoE) cautious stance, which has led the market to believe interest rates will likely remain on hold for longer, thus supporting the British currency.
BoE official Catherine Mann assessed that the risk of inflation being "higher for longer" remains real, making holding rates appropriate at this time. Deputy Governor Clare Lombardelli also cautioned against dismissing the inflation shock as temporary, as its impact could persist. Essentially, the BoE is in no rush to ease policy, which provides additional support for the GBP.
Source: Newsmaker.id