Commerzbank: BOE rate hikes may keep sterling steady
Commerzbank’s Volkmar Baur said the Bank of England is likely to raise rates in November and again in February, limiting downside pressure on sterling. The euro was up 0.1% at 0.8478 pounds after a 16-month low of 0.8445 on Wednesday, LSEG data showed.
0923 GMT - The Bank of England is likely to raise interest rates in November followed by another increase in February, preventing sterling from falling, Commerzbank's Volkmar Baur says in a note. K. " This supports the case for raising rates given recent stickier-than-anticipated inflation, he says. The market is pricing two rate increases by February so the potential tightening might not have much impact on sterling.
However, Commerzbank had previously expected sterling to weaken towards year-end and now expects it to trade sideways versus the euro in coming months. 8445 Wednesday, LSEG data show. com) (END) Dow Jones Newswires October 09, 2026 05:23 ET (09:23 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters.
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