Sterling Could Fall if Markets Pare BOE Rate Rise Bets -- Market Talk

Dow Jones05-06

0830 GMT - Sterling looks exposed to the risk of markets paring interest-rate rise expectations for the Bank of England, Rabobank's Jane Foley says in a note. The market sees the chance of as many as three rate increases over the next year, which has supported sterling, she says. "In Rabobank's view, this is too many." Dramatically higher rates at a time when the labor market is loosening and growth is lacklustre could have a devastating impact on the economic outlook, she says. Rabobank expects market will re-price in favor of just one rate rise this year, causing sterling to creep lower against the euro in nine to 12 months. The euro falls 0.1% to 0.8628 pounds. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

May 06, 2026 04:30 ET (08:30 GMT)

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