The pound is dropping this morning, as the City braces for the Bank of England interest rate decision at noon. Sterling has lost half a cent against the US dollar to $1.3068, its lowest in nearly two weeks. Normally you’d expect a currency to rally when interest rates go up. But there may be some anxiety over whether the Bank will actually do the deed today. Traders may also be anticipating a ‘dovish hike’ - the BoE could raise borrowing costs to 0.75%, but hint that the next rise is a long way away. This chart shows how sterling has struggled, even as an August rate hike looked more likely. Laith Khalaf, senior ... (full story)