The pound has lost ground this afternoon, with the GBP/USD cross falling around a cent after the latest Bank of England (BoE) interest rate decision and inflation report. For the best GBP/USD exchange rate click here.
The currency pair opened today's session around $1.2950 but shortly after the announcement from the UK's central bank sterling/dollar hit an intraday low of $1.2852.
GBP/USD graph
Why did the pound weaken?
As expected Governor Mark Carney and the Monetary Policy Committee kept interest rates on hold at 0.25%.
However, Mr Carney remained cautious by stating we could see a squeeze on consumer spending over the course of 2017 because of inflation rising and wages falling.
He said, this year will be "a challenging time for UK households" and that "wages will not keep up with rising prices".
Those comments won't have helped the pound, but it was the fact the Bank of England cut its economic growth forecast for 2017 from 2% to 1.9% that dented the pounds value.
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