The Bank of England (BOE) held interest rates steady Thursday, after a first-quarter slowdown in economic growth tarnished the case for higher borrowing costs.
The decision marked a sharp contrast to widespread expectations just a few weeks ago, as Threadneedle Street voted 7-2 to keep rates on hold at 0.5 percent.
Earlier in the year, Carney had called for interest rates to be raised "somewhat earlier" and "by a somewhat greater extent" than the roughly two-and-a-half hikes already priced into the market over the next three years.
Yet, in the third Monetary Policy Committee (MPC) review of the year, Britain's central bank left benchmark rates unchanged after a flurry of weaker-than-expected economic data and a Brexit-driven jump in inflation.
Sterling pared all of its earlier gains to fall to session lows following the BOE's decision to hold rates on Thursday.
Before the announcement, the U.K. currency stood 0.4 percent higher against the U.S. dollar at $1.3618. But, shortly thereafter, sterling was off by 0.2 percent at $1.3521 — not far off four-month lows against the greenback.