The pound has pulled back from its post-Bank of England jump

LONDON — The pound is marginally lower on Thursday afternoon, pulling back from a substantial jump that occurred early in the afternoon after the Bank of England held interest rates for another month, but struck a hawkish tone in doing so.

The bank’s Monetary Policy Committee voted 5-3 in favour of holding rates at their current levels, when just one member of the committee had been expected to back a rate hike.

Those members cited concerns about inflation overshooting its government mandated target of 2% substantially in recent months as their reason for backing a hike.

Falling sterling has pushed up the price of importing goods, passing through to everyday items that regular Brits buy.

As a result of the hawkish hold, investors bought into the pound heavily on expectations that a rate hike could be closer than previously expected.

However, that rally was short-lived, and by 2.05 p.m. BST (9.05 a.m. ET) the currency is down against the dollar on the day.