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Sterling pared most of its earlier losses against the US dollar, climbing to $1.5145 by 12:15pm (London time) following the Bank of England's interest rate decision.
The BoE kept interest rates unchanged at a record low of 0.5% and kept the size of its asset purchase facility unchanged at £200 billion, in line with consensus expectations. The minutes of the meeting, due at 9:30am on Wednesday 21 July, will provide further insight into today's decision and highlight whether any policy members are voting for an interest rate hike. Meanwhile, GBP/USD fell earlier today after the International Monetary Fund (IMF) lowered its forecast for UK economic growth for 2010 and 2011. The IMF predicts the UK economy will expand 1.2% this year, down from an earlier forecast of 1.3%, and forecasts growth of 2.1% next year, down from an earlier projection of 2.5%.
