1215 GMT - Sterling rises to a two-week high against the euro and trims losses versus the dollar after the Bank of England voted 8-1 to leave interest rates at 4.5%. One policymaker preferred to cut rates by 25 basis points. While a decision to hold rates was widely expected, some analysts had anticipated more policymakers would favor a rate cut. The BOE reiterated a "gradual and careful" approach to cutting rates is appropriate. "The BOE will wish to avoid cutting rates too much too quickly for fear of causing further inflationary pressure," Quilter strategist Lindsay James says in a note. The euro falls to a low of 0.8363 pounds after the decision, from 0.8377 beforehand. Sterling rises to $1.2979, from 1.2958 previously.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

March 20, 2025 08:15 ET (12:15 GMT)

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