Pound Sterling Price News and Forecast: GBP ticks down even though BoE Bailey signals gradual rate-cut cycle
|Pound Sterling ticks down even though BoE Bailey signals gradual rate-cut cycle
The Pound Sterling (GBP) trades cautiously against the majority of its pairs on Friday even though the commentary from Bank of England (BoE) Governor Andrew Bailey on interest rates on Thursday was less dovish than what market participants had anticipated.
After the bank reduced its key borrowing rates by 25 bps to 4.75%, Bailey commented that interest rates will continue to fall gradually if the economy evolves as expected. However, he emphasized that the monetary policy will remain restrictive until the risks of inflationary pressures remaining persistent get dissipated. Read more...
GBP/USD Forecast: Pound Sterling could push higher once it clears 1.3000
GBP/USD gathered bullish momentum on Thursday and erased a large portion of Wednesday's losses. The pair, however, lost its traction after failing to stabilize above 1.3000 and was last seen trading in negative territory near 1.2950.
The Bank of England (BoE) said on Thursday that it cut the bank rate by 25 basis points (bps) to 4.75%, with eight policymakers voting in favor of the decision, against Catherine Mann, who voted to leave the policy rate unchanged at 5%. This decision came in line with the market expectation. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.