Pound Sterling Price News and Forecast: GBP/USD– BoE decision sets the stage for a December rate cut
|GBP/USD: BoE decision sets the stage for a December rate cut
The Bank of England left rates on hold this month at 4.0%, but the tone of the meeting was unmistakably dovish. The 5–4 vote split underscores just how divided the Monetary Policy Committee is—and how much now depends on Governor Andrew Bailey’s stance heading into December.
Bailey’s comments after the meeting were telling: while he acknowledged September’s encouraging inflation data, he emphasized that it’s just one data point. Yet, his increasing sympathy with the dovish camp—who see the risks to inflation as now balanced—suggests he’s preparing to vote for a rate cut next month. Read more...
GBP/USD outlook: Limited gains after BoE kept rates unchanged
Cable jumped above 1.31 mark after BOE left rates unchanged as widely expected, but trimmed gains on signals that the central bank could cut in December policy meeting, which comes after government’s budget (Nov 26) and releases of inflation reports for October and November, that would provide more information to policymakers.
Bounce from multi-month lows (1.3009 double-bottom, after broader bears faced strong headwinds on approach to psychological 1.30 support), extended into second straight day, but reached so far only the first barrier at 1.3118 (Fibo 23.6% of 1.3471/1.3009), leaving more significant barriers at 1.3170/86, out of reach. Read more...
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