BOE's Gradual Approach to Rate Cuts Should Benefit Sterling -- Market Talk

Dow Jones
2025/03/20

1503 GMT - The Bank of England's decision to maintain a gradual approach to interest-rate cuts is positive for sterling's outlook, says Ivo Mertens, economist at cross-border payments group iBanFirst. The BOE is playing it safe amid global uncertainties and its priority is price stability, he says. "Minimising volatility is key to driving growth, particularly for businesses trading across borders." With fears over a U.S. recession mounting, sterling is more resilient to U.S. tariff threats than the euro, Mertens says, The BOE's decision increases market confidence, making sterling an "attractive and safe bet for investors." The BOE voted 8-1 to leave rates at 4.5% Thursday. Sterling rises to a two-week high of 0.8350 per euro, FactSet data show. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

March 20, 2025 11:03 ET (15:03 GMT)

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