The Bank of England's monetary policy announcement is due at 7:00 am ET. The Monetary Policy Committee is widely expected to hold the key rate at a record low of 0.10 percent and the quantitative easing programme at GBP 875 billion.

Ahead of the decision, the pound traded lower against its major rivals.

The pound was worth 1.3670 against the greenback, 142.91 against the yen, 1.2245 against the franc and 0.8836 against the euro as of 6:55 am ET.