Sterling Rebounds from Three-Month Lows
Sterling rebounded from three-month lows to trade around $1.324, supported by easing oil prices and a stabilization in global bond markets that boosted risk appetite, as investors also weighed hawkish remarks from Bank of England policymakers. Brent retreated after US President Donald Trump ruled out an attack on Iran before the November midterm elections, citing productive talks aimed at ending the conflict. Meanwhile, BoE Chief Economist Huw Pill stressed the need to keep inflation under control, while MPC member Megan Greene warned that UK wage growth could reach around 3.5% in 2027, potentially sustaining inflationary pressures and increasing the need for further rate hikes. Governor Andrew Bailey also reiterated the importance of bringing inflation down. Markets are pricing in a BoE rate hike in November, with the Bank remaining the only major central bank yet to begin tightening monetary policy in response to inflationary pressures stemming from the US-Iran war.
324, supported by easing oil prices and a stabilization in global bond markets that boosted risk appetite, as investors also weighed hawkish remarks from Bank of England policymakers. Brent retreated after US President Donald Trump ruled out an attack on Iran before the November midterm elections, citing productive talks aimed at ending the conflict. 5% in 2027, potentially sustaining inflationary pressures and increasing the need for further rate hikes. Governor Andrew Bailey also reiterated the importance of bringing inflation down.
Markets are pricing in a BoE rate hike in November, with the Bank remaining the only major central bank yet to begin tightening monetary policy in response to inflationary pressures stemming from the US-Iran war.