Sterling was headed for its fourth successive weekly decline versus the dollar today, in what would be a first for the currency since 2015, after the Bank of England held rates and cut its economic growth projections.
The pound fell sharply after the Bank of England yesterday held interest rates steady as expected but cut its growth and inflation projections for this year and next.
The decision bred scepticism among investors over whether the bank would hike rates at all this year after weeks of declines caused by weaker-than-expected economic data that was partly blamed on bad weather.
Sterling has tumbled to $1.35 in recent weeks from its post-Brexit vote highs of close to $1.44 and erased its gains against the dollar for the year.
The pound recovered somewhat yesterday after Bank of England Governor Mark Carney said he expected a rate rise over the course of the next year if there were no shocks to the economy.
The currency rose 0.1% against the dollar at $1.3533 and increased 0.1% against the euro to 88.090 pence.
Some analysts criticised Mark Carney for the decision to hold rates and for a month earlier making comments that the market perceived as a signal for a near-certain May rate hike.
He said yesterday that the bank's earlier guidance on tighter policy had been conditioned on February inflation projections but the economy had not fulfilled those conditions.
