Sterling under pressure after no rate hike

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Sterling under pressure after no rate hike

The pound was under renewed pressure on Monday after the Bank of EnglandBank of England didn't announce an emergency interest rate hike.

The Bank would raise interest rates in response to the weak pound, which hit a record low against the dollar over the weekend, and investors were expecting to see the Bank raise interest rates in response to the weak pound. The pound had regained some ground earlier on Monday, but the Bank did not calm markets when it stopped short of a rise, saying it would monitor markets closely and assess the situation at its next policy meeting in November.

The pound was down nearly two cents at $1.0675 after the statement.

The central bank said at its next scheduled meeting that it will make a full assessment of the impact of the government's announcements and the fall in sterling, as the MPC monetary policy committee has made clear.

In the medium term, the MPC will not hesitate to change interest rates as necessary to return inflation to the 2% target in the medium term, in line with its remit. Markets are concerned about the prospects of the UK economy since the government announced plans on Friday to cut taxes by the largest amount in 50 years.