Sterling Could Underperform if BOE Ramps Up Rate Cuts -- Market Talk

Dow Jones01-07

1227 GMT - Sterling could underperform later in the year if the Bank of England becomes more active in cutting interest rates than previously assumed, MUFG Bank analysts say in a note. The BOE voted 6-3 to keep rates unchanged at the December meeting with three policymakers preferring a rate cut. This highlights that the overall composition of the BOE's Monetary Policy Committee is shifting less cautious about cutting rates, the analysts say. "We believe the rates market is under-priced for BOE rate cuts and that should mean lower yields helps sterling underperform, resulting in EUR/GBP drifting higher." (renae.dyer@wsj.com)

(END) Dow Jones Newswires

January 07, 2025 07:27 ET (12:27 GMT)

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The BOE voted 6-3 to keep rates unchanged at the December meeting with three policymakers preferring a rate cut. This highlights that the overall composition of the BOE's Monetary Policy Committee is shifting less cautious about cutting rates, the analysts say. \"We believe the rates market is under-priced for BOE rate cuts and that should mean lower yields helps sterling underperform, resulting in EUR/GBP drifting higher.\" ","collect":0,"end_time":0,"defaultTopTitle":"","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"BOE":"黑岩全球成长基金"},"translate_title":"市场传言，如果英国央行加大降息力度，英镑可能表现不佳","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BOE":1},"content_text":"1227 GMT - Sterling could underperform later in the year if the Bank of England becomes more active in cutting interest rates than previously assumed, MUFG Bank analysts say in a note. 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