Sterling Could Fall if BOE Vote Split Signals Looser Policy -- Market Talk
Dow Jones
Mar 20, 2025
1009 GMT - Sterling could fall modestly if the Bank of England leaves interest rates unchanged in a decision at 1200 GMT, but three policymakers favor a rate cut, ING's Francesco Pesole says in a note. A 6-3 vote to hold rates steady could read as a signal to accelerate rate cuts and would likely weigh on sterling slightly, he says. However, markets are aware that more data are needed to tilt the balance decisively in favor of rate reductions, he says. ING expects three more 25 basis-point rate cuts this year. U.K. money markets price in about 50 basis points of cuts by December, according to LSEG. Sterling falls 0.4% to $1.2955. The euro falls 0.1% to 0.8375 pounds. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
March 20, 2025 06:09 ET (10:09 GMT)
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