Sterling Under Pressure Ahead of BoE Rate Decision
The British pound traded around $1.34, its weakest level since late July, ahead of the Bank of England’s highly anticipated policy announcement, while investors were also digesting the Federal Reserve’s rate hike yesterday. No change in interest rates is expected from the BoE today, but markets will be watching closely for any signals about the future path of policy, with a November hike still priced in, albeit with less conviction as oil prices retreat for a second consecutive session. The outlook for the Middle East remains highly uncertain, however, keeping oil prices elevated and adding to the challenge facing central banks as they try to contain inflation without putting excessive pressure on economic activity. In the US, the Federal Reserve raised interest rates by 25 basis points, the first increase since July 2023, and signaled another hike later this year, as policymakers continue to grapple with persistent inflation pressures.
34, its weakest level since late July, ahead of the Bank of England’s highly anticipated policy announcement, while investors were also digesting the Federal Reserve’s rate hike yesterday. No change in interest rates is expected from the BoE today, but markets will be watching closely for any signals about the future path of policy, with a November hike still priced in, albeit with less conviction as oil prices retreat for a second consecutive session.
The outlook for the Middle East remains highly uncertain, however, keeping oil prices elevated and adding to the challenge facing central banks as they try to contain inflation without putting excessive pressure on economic activity. In the US, the Federal Reserve raised interest rates by 25 basis points, the first increase since July 2023, and signaled another hike later this year, as policymakers continue to grapple with persistent inflation pressures.