Sterling tumbles as dovish BoE keeps rates on hold

McCafferty remains only member to vote for a hike

Sterling fell sharply this afternoon in response to the Bank of England's announcement it will keep rates on hold at 0.5%, and dovish comments in the November Inflation Report.

The Bank's Monetary Policy Committee (MPC) voted 8-1 to keep rates at  record lows, citing a weakened outlook for global growth since its August Inflation Report. Markets were unsurprised by the announcement, with the FTSE 100 flat at around 6,416 points, but sterling tumbled 0.7% against the US dollar to £1.5323 and was in the red against all other major currencies. In the minutes for its 4 November meeting, the MPC said Ian McCafferty once again remained the only member to vote in favour of increasing interest rates by 25 basis points. Carney: Rate rises 'possibility not a certai...