0802 GMT - Sterling falls as investors exercise caution ahead of the Bank of England's interest-rate decision at 1200 GMT. The market is pricing in a 94% chance of the BOE cutting rates by 25 basis points, according to LSEG. This marks the first decision since the U.K. government bond selloff last month. "Indeed, at the height of the pound's slump, there had been speculation about whether the BOE would cut at all at this meeting," Deutsche Bank analysts say in a note. However, the latest inflation data were lower than expected and this supported market bets for another cut. Deutsche Bank expects a 8-1 vote in favor of a cut. GBP/USD falls 0.2% to 1.2476. EUR/GBP rises 0.1% to 0.8325. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

February 06, 2025 03:02 ET (08:02 GMT)

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