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The GBP/MYR currency pair settled below recent high of 5.5208, its strongest level since November 4th, in the wake of the Bank of England’s policy decision.

The BoE reduced its benchmark interest rate by 25 basis points to 3.75%, in line with broad expectations.

Still, the policy decision revealed significant internal disagreement, with a 5-4 vote on the Monetary Policy Committee. Four members favored keeping the rate unchanged at 4.00%, highlighting ongoing divergence over the appropriate pace of easing.

In its Monetary Policy Summary, the BoE said the scale of any additional rate reductions would depend on how the inflation outlook develops.

The central bank also noted that the overall degree of policy restriction had already lessened following a total of 150 basis points of cuts since August 2024.

While officials still see room for more rate cuts over time, they warned that subsequent decisions on easing were becoming a “closer call.”

The exotic Forex pair lost 0.51% for the week.

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