The GBP/CAD currency pair hovered above a 1-month low of 1.8484 on Friday in the wake of the Bank of England’s policy decision and ahead of key Canadian jobs data.
The Bank of England left its benchmark interest rate intact at 3.75% at its February 5th meeting, in line with market consensus.
Yet, it was a narrow 5 to 4 vote, as officials weighed easing inflation pressures against risks stemming from a weakening economy.
Four members voted in favor of a 25 basis point cut, which highlighted growing divisions within the Monetary Policy Committee.
BoE policy makers said that risks of persistent inflation had decreased, while weaker demand and a softening labor market posed downside risks.
The MPC indicated that further rate cuts were likely, but they would depend on incoming inflation figures.
Meanwhile, CAD traders will be paying close attention to Canadian labor market data due out later today for fresh clues over consumer spending strength.
Canada’s economy probably added 7,000 jobs in January, according to market consensus, following a job growth of 8,200 in December.
The unemployment rate in the country probably remained steady at 6.8% in January.
The GBP/CAD currency pair was last up 0.16% on the day to trade at 1.8575.
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