What is the current status of the British pound against the dollar as of February 3, 2026?

As of Tuesday, February 3, 2026, the British pound was trading flat against the dollar at $1.3672.

When is the Bank of England's next interest rate decision expected?

The Bank of England's interest rate decision is expected on Thursday, February 5, 2026.

What was the UK's inflation rate in December 2025?

Britain's inflation rate rose to 3.4% in December 2025, which was the highest in the Group of Seven most affluent nations.

Home / Business and Economy / Pound Steady: UK Rate Holds Ahead of BoE Decision

Pound Steady: UK Rate Holds Ahead of BoE Decision

3 Feb

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Summary

Pound remained flat against the dollar ahead of Bank of England's rate decision.
UK inflation hit 3.4% in December, highest in G7 nations.
Stronger recent data boosted pound, with rate cuts expected later in 2026.

Pound Steady: UK Rate Holds Ahead of BoE Decision

As of Tuesday, February 3, 2026, the British pound showed little change against the dollar, holding steady at $1.3672. This stability occurred against a backdrop of a light economic calendar, with traders awaiting the Bank of England's crucial interest rate decision scheduled for Thursday.

Analysts widely expect the Bank of England to keep its benchmark interest rate at 3.75% during its upcoming meeting. However, projections suggest potential rate cuts may occur once or twice before the end of 2026.

Recent economic indicators have bolstered the pound's performance this year. November's GDP figures surpassed expectations, and retail sales and business activity saw positive upticks in December and January, respectively. This has contributed to the pound's appreciation against both the dollar and the euro.