In a widely expected decision, the Bank of England's Monetary Policy Committee held the policy rate unchanged at 0.75% in December. The asset purchase facility remained steady at €435 billion as well.

The GBP/USD pair fluctuated sharply with the initial reaction but struggled to make a decisive move in either direction. As of writing, the pair was up 0.15% on the day at 1.3097. Below are some key takeaways from the policy statement, per Reuters.

"Policymakers vote 9-0 to maintain gilt purchase target at 435 billion GBP."

"Can't tell yet how much policy uncertainties for companies and households have declined since the election."

"If global growth fails to stabilise or Brexit uncertainties remain entrenched, monetary policy may need to reinforce expected UK recovery."

Source : FXstreet