Live Coverage: Bank of England set for hawkish hold, Pound may recover
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.
Join FXStreet Premium to ask our analysts questions live, leverage actionable analysis and get Gold and signal alerts.
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.
Live financial market coverage
FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and, for Premium members, the ability to ask our experts questions in real time.
FXStreet Premium
FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans, and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
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.
