The euro fell to its lowest level since July 2017 and the dollar rallied as Washington piled pressure on Ankara and Moscow. The lira went into free-fall, sinking more than 10 percent to all-time lows.
At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
The MPC voted by 9-0 to increase Bank Rate by 0.25 percentage points, to 0.75%.
U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports
The S&P 500 and Dow slipped on Wednesday as gains in Apple shares were offset by a drop in energy and industrial companies, while the U.S. Federal Reserve remained on course for an expected interest rate hike in September.
The Committee decided to maintain the target range for the federal funds rate at 1-3/4 to 2 percent.
Policy balance rate at -0.1 percent and cut inflation forecasts for the current year and for 2019 and 2020
Stocks in Europe edged higher on the heels of a mixed session in Asia as corporate earnings again took a front seat. The dollar and Treasuries were steady before the release of U.S. gross domestic product data.
Oil prices were mixed on Tuesday as benchmark Brent crude rebounded from earlier losses with market participants divided in their concerns amid rising tensions between the United States and OPEC producer Iran and signs of oversupply.
The dollar ticked up slightly on Tuesday, adding to gains made in overnight trade after U.S. Treasury yields rose on expectations the Federal Reserve would persist with its rate hikes this year.