Pound sinks as BoE holds rates despite Fed hike

November inflation at two-year high

The Bank of England unanimously voted to hold rates this month, a day after the Federal Reserve hiked interest rates for the first time in a year, sending sterling falling against the US dollar.

In its December meeting, the Monetary Policy Commitee (MPC) voted to hold rates at 0.25% and maintain the current asset purchase programme at £435bn. The news sent sterling falling 0.7% against the US dollar, to trade below the $1.25 mark at $1.2473.  The dollar was also strengthened by last night's move by the Federal Reserve to raise interest rates by another 0.25%, in its second move since 2006 and the first increase in 12 months. Commenting on the Bank of England's decision, governor Mark Carney (pictured) suggested the move in interest rates next year could be "in either direc...