0854 GMT - Sterling's pullback against the euro has further to run as the Bank of England should refrain from raising interest rates this year, ING's Francesco Pesole says in a note. The BOE is likely to leave rates steady on Thursday but the focus is on whether support for tighter policy broadens within the Monetary Policy Committee, he says. "If inflation is still expected to remain contained, we believe the BOE will leave rates unchanged for the rest of the year." This is the clearest near-term risk for sterling given market pricing for rate rises this year, he says. LSEG data show markets price in 37 basis points of rate increases by year-end. The euro rises 0.2% to 0.8546 pounds. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 04:54 ET (08:54 GMT)

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