Sterling soared to its highest level in two and a half years against the US dollar after the Bank of England held its interest rate steady, diverging from the Federal Reserve’s substantial rate cut. V

The pound hits a two-year high, reaching $1.33, after the Bank of England holds rates steady and signals gradual monetary loosening. Analysts predict further gains, though concerns remain over the UK's economic outlook.

The British pound rose against the dollar on Wednesday after UK inflation data boosted the market view that the Bank of England will keep interest rates steady on Thursday, in contrast with an expected start to the U.