Sterling Could Rise if BOE Is More Cautious Than Expected on Rate Cuts -- Market Talk

Dow Jones12-16

0854 GMT - Sterling could rise if the Bank of England cuts interest rates as expected Thursday but sounds more cautious than anticipated about future cuts, Convera strategist George Vessey says in a note. Such a surprise could materialize through a narrow vote split on the potential rate cut, with some policymakers voting against the move. Alternatively, the statement could signal limited scope for additional cuts, he says. "In that scenario, investors would be forced to reassess the pace of the easing cycle, tempering expectations for aggressive loosening and potentially driving a short term rebound in the pound and gilt yields." Sterling trades steady at $1.3379. The euro falls 0.1% to 0.8777 pounds. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

December 16, 2025 03:54 ET (08:54 GMT)

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