The GBP/CHF currency pair extended losses on Thursday, pulling further away from a 1 1/2-week high of 1.0661, ahead of the outcome of the Bank of England’s policy meeting.
The Bank of England is expected to leave its benchmark interest rate intact at 3.75% at its February 5th meeting.
In December, the BoE reduced its policy rate by 25 basis points in a decision that revealed significant internal disagreement, with a 5-4 vote on the Monetary Policy Committee.
Four MPC members favored keeping the rate unchanged at 4.00%, highlighting ongoing divergence over the appropriate pace of easing.
The BoE had said that policy settings would follow a gradual downward trajectory rather than a sharp easing move. It said the scale of any additional rate reductions would depend on how the inflation outlook develops.
Inflation in the UK has remained well above the BoE’s 2% target, even after moderating in recent months.
While BoE officials still saw room for more rate cuts over time, they warned that subsequent decisions on easing were becoming a “closer call.”
Investors also remained focused on the policy outlook for the Swiss National Bank against the backdrop of still subdued domestic inflation.
Earlier in the week, SNB Chairman Martin Schlegel underlined that maintaining price stability remained the central bank’s primary objective and emphasized the institution’s readiness to act if necessary to address inflation risks.
The GBP/CHF currency pair was last down 0.43% on the day to trade at 1.0552.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
