1237 GMT - Sterling's falls appear to reflect the Bank of England lowering its near-term inflation projections Thursday, Capital.com's Daniela Hathorn says in a note. The BOE voted 7-2 to leave rates at 3.75% with two policymakers preferring to raise rates by 25 basis points. The BOE said its expectations for inflation in the third and fourth quarters were slightly below the path anticipated in April. Markets seem focused less on the vote split and more on the lower inflation outlook and the BOE acknowledging progress on disinflation, she says. However, markets still anticipate a rate rise by year-end, she says. Sterling falls to a 10-week low of $1.3202, LSEG data show. The euro rises to a three-week high of 0.8675 pounds. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

June 18, 2026 08:37 ET (12:37 GMT)

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