Sterling Could Fall if BOE Resists Markets' Rate-Hike Expectations
Dow Jones
Sep 11
1333 GMT - Sterling could fall versus the euro if Bank of England Governor Andrew Bailey pushes against markets' expectations of BOE interest-rate rises during its policy decision on Thursday, ING strategists say in a note. Investors currently fully price in one-quarter point BOE rate rise in 2026, and three rate increases by March 2027, LSEG data show. Euro is last down 0.1% at 0.8583 pounds. "We have a 0.86 euro/sterling forecast for end-September and a 0.87 view for year-end on the assumption that some of that aggressive BOE tightening is priced out," ING strategists say.
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