Live Coverage: Bank of England set for hawkish hold, Pound may recover

Yohay Elam FXStreet

Wage growth is high, and that is only one reason for the BoE to keep rates at elevated levels. What will officials signal for 2025? How will GBP/USD react? Live covrage.

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Bank of England may follow Fed in hawkish stance

Britain pays – salaries are up 5.2%YoY in October, indicating more price pressures. While the core Consumer Price Index (core PCE) is off the highs, a 3.5% level in November is still too much for the Bank of England. It will most likely leave rates unchanged at 4.75% in its last meeting of the year.

The BoE has slashed borrowing costs twice but is now slowing down – an echo of the US Federal Reserve (Fed). GBP/USD tumbled after Fed Chair Jerome Powell conveyed a hawkish message, lifting the US Dollar.

A similar stance from the "Old Lady" – as the BoE is sometimes referred to – would help GBP/USD recover.

A large majority of the nine-strong Monetary Policy Committee (MPC) is set to support a no-change decision. Any significant dissent would weaken Sterling.

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Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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