The pound euro (GBP/EUR) exchange rate has fallen below €1.1550 to its lowest level in a month.
The pound fell after the BoE left interest rates unchanged at 5.25%, defying expectations of a 25 basis point hike to 5.5%. The vote split was very tight at 4-5.
The rate decision came after UK inflation unexpectedly cooled to 6.7% YoY in August, when economists had expected a rise to 7%. Core inflation fell to 6.2%.
The euro pushed higher despite consumer confidence falling by more than expected in August highlighting the weak sentiment.
ECB’s Vujcic said that no more rate hikes are needed if the outlook holds. His comments come after mixed mesages from other ECB policymakers across the week.