1254 GMT - The Bank of England's more cautious than expected tone on interest rate cuts Thursday should help sterling to benefit from the prospect of closer U.K.-EU ties, ING analysts say in a note. The BOE cut rates by 25 basis points but maintained its guidance for gradual future cuts. The BOE's indication that it's not ready to accelerate rate cuts, as some had expected, lifted sterling. Sterling could rise further if the U.K-EU summit on May 19 lead to improved relations, the analysts say. Warmer relations could prompt the Office for Budget Responsibility to raise U.K. growth forecasts, providing more U.K. fiscal headroom. The euro falls 0.3% to 0.8477 pounds and ING expects it to fall to 0.8400 this month.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

May 08, 2025 08:54 ET (12:54 GMT)

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