The GBP/USD pair remains on a downward trend following the Bank of England's recent actions.
Currently, the British pound sterling paired with the US dollar has reached its lowest point in six months, with the current exchange rate standing at 1.2276.
In a surprising move, the Bank of England decided to maintain the interest rate at 5.25% per annum during its meeting on Thursday. This was contrary to the expectations of both investors and economists, who had anticipated a rate hike to 5.50% per annum.
In their commentary, the regulator noted that while wage growth is still visible, there are signs of a weakening labor market.
This development has driven the pound sterling to its lowest point in six months when paired with the US dollar.
The Bank of England's decision to keep the rate unchanged is at odds with the position of other major central banks, leaving the pound in a highly precarious position.