Investing.com - The pound erased losses against the U.S. dollar on Thursday, after the Bank of England voted to leave its monetary policy unchanged, in a widely expected move.
GBP/USD hit 1.4496 during European afternoon trade, the pair’s highest since May 6; the pair subsequently consolidated at 1.4478, adding 0.21%.
Cable was likely to find support at 1.4371, the low of May 9 and resistance at 1.4543, the high of May 6.
The BOE said it was holding the benchmark interest rate at 0.50%, in a widely expected move. The rate has been held at that record-low level since March 2009.
The central bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.
All nine MPC members were in favor of holding the central bank's monetary policy.
In the separately released inflation report, the BoE cut its growth forecast for the second quarter to 0.3%, compared to the prior estimate of a 0.5% expansion.
For 2016, the central bank lowered its estimate for growth to 2.0%, from the prior 2.2%.
Investors were awaiting comments by BoE Governor Mark Carney, scheduled shortly after the policy statement, for indications on the central bank’s future policy moves.
Sterling was higher against the euro, with EUR/GBP declining 0.43% to 0.7875.