Pound Sterling Dips vs Euro and Dollar on 6-3 Vote, August Cut Done Deal

June 20, 2025 - Written by Frank Davies

STORY LINK Pound Sterling Dips vs Euro and Dollar on 6-3 Vote, August Cut Done Deal

The Pound lost ground against the Euro and the US Dollar after the latest Bank of England (BoE) interest rate decision.

The decision was in line with strong expectations, but the vote split boosted confidence further in an August rate cut and Sterling lost ground.

The Pound to Dollar (GBP/USD) exchange rate dipped to near 1.3400 from 1.3430 with the Pound to Euro (GBP/EUR) exchange rate retreating to 1.1695 from 1.1710.

The BoE Monetary Policy Committee (MPC) held interest rates at 4.25%, in line with strong consensus forecasts.

As far as the vote split is concerned, there was a 6-3 vote for the decision with Dhingra, Taylor and Ramsden backing a further 25 basis-point cut to 4.00%.

The bank welcomed evidence of weaker wages growth and expects that this process will continue, but it is still concerned over the underlying dynamics surrounding wages and underlying inflation. In this context, it considers that more pronounced disinflation is needed to reach the 2% target.

Given the outlook, and continued disinflation, a gradual and careful approach to the further withdrawal of monetary policy restraint remained appropriate.


The dissenters saw a strong case for a further cut now and no action would risk an unduly large output gap.

Markets are now pricing in an 80% chance of a cut at the August policy meeting.

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TAGS: Pound Sterling Forecasts