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Pound weak as Bank of England leaves UK interest rates on hold

GBPUSD News by Allie Longford on 07:33 December 15, 2016 EST
The pound keeps losing ground against the dollar in a combination of the FED raising rates just yesterday and the Bank of England keeping its base rate at historic lows.

GBPUSD trades at 1.24 on Thursday.

The Bank of England left interest rates at their record low of 0.25% but repeated a warning that higher inflation and slower wage growth risk squeezing household purchasing power and spending next year.

The Bank's nine member voted unanimously to keep rates on hold and maintain the current asset purchase programme.

The minutes of their last meeting highlighted a “notable decline in consumer confidence”, repeated a forecast for unemployment to rise next year and for inflation to overtake pay growth “marginally” in 2017. In addition, “A slowdown in growth remained likely, but there had been little news since the time of the November inflation report about domestic activity and, although the near-term global outlook had improved, this was counterbalanced by more elevated risks”.