1123 GMT - Sterling falls after the Bank of England left interest rates unchanged at 4.25%, as expected, but three out of nine policymakers preferred a 25 basis points rate cut. Many analysts had expected a 7-2 vote to keep rates unchanged. The BOE said economic growth remains weak, the labor market continues to loosen and pay growth continues to moderate. Inflation is expected to remain at current levels this year before falling back towards target next year. The BOE acknowledged an uncertain global outlook amid the Israel-Iran conflict with energy prices rising. It reiterated a "careful and gradual" approach to future rate cuts. Sterling falls to $1.3401 after the decision from $1.3426 beforehand. The euro rises to 0.8557 pounds from 0.8541 pounds. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

June 19, 2025 07:23 ET (11:23 GMT)

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