The Pound remained stable against the Dollar on Monday, hovering near the multi-year peak reached last week ahead of Thursday’s Bank of England policy announcement.

Sterling was last up just under 0.1% against the Dollar at $1.3696. It had touched $1.3867 last week, its highest level since September 2021, but eased on Friday as the Dollar strengthened following US President Donald Trump’s nomination of Kevin Warsh as Federal Reserve chair.

Against the Euro, the Pound was largely unchanged at 86.61 pence.

Focus this week is on the Bank of England, which is widely expected to keep its benchmark interest rate at 3.75% when it announces policy on Thursday, according to a January Reuters poll in which all but two economists forecast no change.

Economic data have remained strong since the last meeting, when the central bank lowered the Bank Rate, and inflation continues to be the highest among G7 nations, indicating that the BoE can likely delay any rate cuts for the time being.

The past two meetings saw policymakers sharply divided, but this time the decision is expected to be more clear-cut.

Furthermore, a key gauge of the UK manufacturing sector, the S&P Global Manufacturing Purchasing Managers’ Index, climbed to its highest level since August 2024 last month, according to a survey released on Monday, signalling a potential rebound in the economy following a slow finish to 2025, Reuters reports.

Recent PMI readings suggest stability in the UK manufacturing sector, with the output index holding above 51.0 for three of the past four months. A broad improvement across the PMI’s sub-indices in January indicates that the steady momentum seen in recent months could be maintained.

The data had minimal effect on expectations for Bank of England policy, with money market traders fully pricing in just one quarter-point rate cut in 2026 and around a 50% probability of a second.