Britain's pound slipped almost 1 percent to a nine-month trough against the euro on Thursday, following the Bank of England voted 6-2 to leave interest rates at their record lows and lowered its forecasts for growth, inflation and wages.
BoE Governor Mark Carney and his top officials reiterated that they might raise borrowing costs more than investors expect over the next three years, possibly within a year.
But markets weighed on the Bank's revision of its 2017 growth forecasts lower, to 1.7 percent from 1.9 percent in May. The unexpected reduction of its inflation projections, which also put pressure on the pound, to just under 2.6 percent in a year's time after peaking around 3 percent in October.
GBP/USD dropped to a three-day low of 1.3113, having earlier reached an 11-month high of 1.3267. EUR/GBP rose to 0.9048
Euro extended its recent highs against the dollar as weaker than expected ISM data showed service activity slowed in July. EUR/USD rose to 1.1893, stopping just shy of the 1.19 mark as forex investors wait for today's non-farm payrolls to take further bets.
