Recent Federal Reserve and Bank of England policy decisions have shifted the interest-rate differential in favor of the dollar, pressuring GBP/USD. The Fed raised its target range to 3.75%-4.00% on September 16, while the BoE held Bank Rate at 3.75% on September 17 in a 6-3 vote amid upside inflation risks. UK CPI stood at 3.1% in August and is projected higher in Q4 due to energy costs, yet strong U.S. PMIs and hawkish Fed projections have supported Treasury yields. The pair trades near 1.325 as of late September, within analyst ranges of 1.31-1.37 through year-end. Key near-term catalysts include the Fed's October 28 meeting and BoE's November 5 decision, which could widen or narrow the policy gap and influence sterling's path amid ongoing monetary policy divergence.