2026.04.3006:09:55UTC+00Pound Weakens to Three-Week Low Ahead of BoE Decision

The pound slipped to $1.345 against the dollar, its weakest level since April 9, as investors prepared for a packed day of economic releases and central bank meetings, including the Bank of England’s policy decision. At the same time, Brent crude surged to four-year highs after an Axios report indicated the US is weighing additional military options in Iran, heightening inflation worries ahead of those meetings.

The Bank of England is widely expected to keep interest rates unchanged today, underscoring its cautious stance amid the escalating Middle East tensions. Nonetheless, markets are still pricing in nearly three quarter-point rate increases by the BoE in 2026.

These developments come on the heels of the Federal Reserve’s decision to leave rates on hold. However, the Fed meeting exposed growing divisions among policymakers: four officials dissented, the first such level of disagreement since October 1992, and three of them opposed the Fed’s guidance that pointed to potential future rate cuts.