Sterling Could Rise if BOE Sticks to Gradual Rate Cuts -- Market Talk
Dow Jones
May 08, 2025
0821 GMT - Sterling could rally if the Bank of England reiterates a gradual approach to interest-rate cuts at Thursday's meeting, ING's Chris Turner says in a note. The BOE is expected to cut rates by 25 basis points in a decision at 1102 GMT but some market participants expect it to drop its "gradual and careful" reference about future cuts. "Given that the market is now pricing four 25 basis-point rate cuts this year and we expect three (May, August, November), if BOE easing remains gradual and careful, sterling could rally," Turner says. In this case the euro could fall to 0.8435-0.8440 pounds, he says. the euro last trades down 0.1% at 0.8501 pounds. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
May 08, 2025 04:21 ET (08:21 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.