Sterling Could Fall if BOE Holds Rates

Dow Jones
Jul 27

0940 GMT - Sterling could fall as the Bank of England looks set to leave interest rates unchanged Thursday while fiscal uncertainty persists, Monex Europe analysts say in a note. Monex expects another 7-2 vote in favor of keeping rates at 3.75% with Megan Greene and Huw Pill again preferring a rate rise. Risks are skewed towards a larger minority favoring a rate rise or BOE Governor Andrew Bailey hinting at tightening in the fall, the analysts say. "Failing that, with fiscal uncertainty under Prime Minister Andy Burnham still weighing on the pound, we retain a modest downside bias for sterling." Sterling rises 0.1% to $1.3332 against a weaker dollar but falls 0.2% against the euro at 0.8546 per euro. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

July 27, 2026 05:40 ET (09:40 GMT)

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