GBP/USD anticipates decisive measures from the Bank of England.
The British pound sterling is accumulating strength for its daily fluctuations against the US dollar, with the current GBP/USD exchange rate at 1.2760.
Today, the focal point is the Bank of England’s meeting. It is widely anticipated that the interest rate will increase by 25 basis points to 4.75% per annum. Additionally, financial markets are speculating about the possibility of a further interest rate hike to 5%. This probability is estimated at 40%, making it a significant consideration.
Yesterday’s release of UK inflation statistics revealed an uptick in the cost of mortgage loans, providing additional evidence of inflationary pressures.
Essentially, investors are eagerly awaiting the Bank of England’s comments regarding its future actions. It is expected that the interest rate will be raised at least once more before the Central Bank evaluates the cumulative impact.
Any indications that the Bank of England intends to continue tightening its monetary policy will bolster the GBP’s position.
