Sterling Might Show Resilience to Potential BOE Rate Cut -- Market Talk

Dow Jones12-08

1413 GMT - Another interest-rate cut by the Bank of England on December 18 looks likely but this shouldn't have a major negative impact on sterling, Ebury's Enrique Diaz-Alvarez says in a note. "With the U.K. economy showing signs of slowing, the jobs market remaining fragile and inflation finally dropping from its highs, we think that another cut is almost a certainty next week." The key will be the BOE's voting split and communications on future easing. However, the combination of U.K. rates remaining relatively high, modest economic growth and the Federal Reserve expected to cut rates further should provide some support to sterling in the coming months, he says. Sterling is steady at $1.3329. The euro rises 0.1% to 0.8738 pounds. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

December 08, 2025 09:13 ET (14:13 GMT)

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