BOE Caution on Rate Cuts Is Likely to Support Sterling — Market Talk
DDow Jones
The prospect of the Bank of England sticking to a cautious stance on interest-rate cuts should support sterling over the rest of 2025, Ebury strategist Matthew Ryan says in a note. The U.K. economy showed surprise resilience in the second quarter, he says. Data Thursday showed stronger-than-expected 0.3% economic growth. This should ease pressure on the BOE to continue cutting rates, with markets now bracing for a pause in policy easing at upcoming meetings in September and December, Ryan says. Sterling rises 0.2% to $1.3563 against a weaker dollar. It falls versus the euro, which is last up 0.2% to 0.8618 pounds. (renae.dyer@wsj.com)