GBP/SGD settles below 2-week high, posts weekly gain

The GBP/SGD currency pair settled below Friday’s high of 1.7299, its strongest level since July 24th, in the wake of the Bank of England’s policy decision.

The Bank of England lowered its benchmark interest rate by 25 basis points to 4% at its August 7th meeting – the lowest rate since March 2023.

It was a rare two-round vote that revealed sharp divisions over how to cope with sticky inflation and a softening economy.

Five of the nine policy makers supported a 25 basis point rate cut, while four voted for leaving rates on hold.

It was the first time in the BoE’s history that two votes were required to reach a majority on interest rates.

BoE Governor Andrew Bailey said it was a “finely balanced” decision and reiterated that future rate cuts would be “gradual and careful.”

The exotic Forex pair gained 0.96% for the week.