Pound Sterling trades higher against its peers despite BoE Bailey’s dovish remarks
The Pound Sterling (GBP) trades higher against its major currency peers, except antipodeans, 0.23% higher to near 1.3520 against the US Dollar (USD) during the European trading session on Wednesday. The British currency gains even as Bank of England (BoE) Governor Andrew Bailey has delivered dovish remarks on the monetary policy outlook.
On Tuesday, the comments from BoE’s Bailey before the Parliament’s Treasury Committee signaled that there is scope for interest rate cuts amid the expectation that inflationary pressures will return to the central bank’s 2% target. Read more…
GBP/USD extends gains for fourth consecutive day as investors watch BoE rate outlook
GBP/USD continues to rise on Wednesday, reaching 1.3516. Following recent comments from Bank of England Governor Andrew Bailey, investors are seeking additional clarification on his decision to keep the rate unchanged at the last meeting. The Monetary Policy Committee left the rate unchanged, with a narrow margin.
The market expects two rate cuts in 2026, taking the rate down to 3.25%. However, the timing of the easing remains uncertain. If Bailey signals the possibility of a cut as early as March, the market could begin pricing in more than 50bps of easing this year. Read more…