Sterling strengthened against the dollar on Monday, with investors setting their sights on the Bank of England’s upcoming policy meeting later this week. The pound advanced by 0.29% to 1.33045, reflecting broader currency market trends.
Market activity in the UK was subdued due to a bank holiday, resulting in limited domestic news ahead of the BoE’s Thursday meeting. Analysts widely anticipate a 25 basis point rate cut to 4.25%, but attention will focus on the accompanying statement amid calls for a more aggressive approach to counter global economic slowdowns.
According to Samara Hammoud from the Commonwealth Bank of Australia, the BoE is likely to revise its GDP forecasts due to ongoing trade tensions but may maintain a gradual rate-cutting strategy. However, the removal of ‘gradual’ from its narrative could prompt markets to adjust their outlook for further rate cuts.
(With inputs from agencies.)
