The GBP/MYR currency pair settled above recent low of 5.4589, its weakest level since January 31st, in the wake of the Bank of England’s and the Central Bank of Malaysia’s policy decisions.
The Bank of England left its benchmark interest rate without change at 4% at its November 6th meeting, in line with market expectations.
Four policy makers voted in favor of a 25 basis point rate cut to 3.75%, reflecting increasing support for easing.
BoE policy makers acknowledged that UK CPI inflation had peaked and underlying disinflation had shown progress.
A subdued economy and rising labor market slack were also factors supporting disinflation, the BoE said.
Policy makers also noted risks over achieving the 2% inflation target were now more evenly balanced. Persistent inflation has become a lesser concern, while downside risks from weak demand have risen.
In case disinflation continues as anticipated, the bank rate will likely move lower at gradual pace.
Meanwhile, the Central Bank of Malaysia maintained its benchmark interest rate at 2.75% at its November 6th meeting, in line with market consensus.
Year-to-date, headline and core inflation averaged 1.4% and 1.9%, the central bank noted.
Headline inflation is projected to remain moderate next year amid continued easing in global cost pressures.
And, core inflation is forecast to remain stable and near its long-term average, the central bank said.
The exotic Forex pair lost 0.38% for the week.
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