Bank Of England Holds Rates Steady Amid Federal Reserve's 50-Basis-Point Rate Cut

The Bank of England held its interest rate steady following its August cut, despite the U.S. Federal Reserve opting for a 50 basis point cut. The BOE emphasized a "gradual approach" to easing due to persistent service inflation. The British pound rose on the news, reaching its highest level since March 2022. The BOE also announced plans to reduce its bond holdings over the next year. Analysts believe this cautious approach could lead to a rate cut in November.