Sterling soared to its highest level in two and a half years against the US dollar after the Bank of England held its interest rate steady, diverging from the Federal Reserve’s substantial rate cut. V

The pound hits a two-year high, reaching $1.33, after the Bank of England holds rates steady and signals gradual monetary loosening. Analysts predict further gains, though concerns remain over the UK's economic outlook.

According to Scotiabank’s chief FX strategist Shaun Osborne; “A 1/4-point cut is likely to be accompanied by a dovish-leaning policy statement. A 1/2-point cut may see more measured forward-looking messaging.”