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…