The GBP/NOK currency pair hovered above a 7-week low of 13.5380 on Thursday, as investors braced for the outcome of the Bank of England’s policy meeting.

The Bank of England is expected to lower its benchmark interest rate by 25 basis points to 4% at its August 7th meeting – the lowest rate since March 2023.

In June, the BoE left borrowing costs on hold, as it cited a challenging backdrop of heightened global uncertainty and persistent inflationary pressures.

Three MPC members had voted in favor of a 25 bps rate cut to 4%.

The central bank had said that consumer inflation was likely to remain broadly at current levels for the rest of 2025 before easing toward the target in 2026.

The BoE’s new forecasts are likely to reflect higher short-term inflation due to rising energy and food costs and a weaker labor market after April’s tax hikes.

Meanwhile, data out of Norway showed that manufacturing production had shrunk 0.1% month-on-month in June, slowing from a 1.6% drop in May.

The GBP/NOK currency pair was last up 0.26% on the day to trade at 13.6414.