Live Coverage: BoE set to resume cuts and shake GBP/USD

Yohay Elam FXStreet

Start, stop and now start again – the Bank of England (BoE) is set to cut interest rates, and perhaps more moves after a gradual path. Will the Pound suffer?

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BoE has to deal with massive uncertainty

UK interest rates have room to fall from the current 4.50% rate, but if prices rise and the economy holds up, perhaps the direction could change. Fortunately, inflation has been coming down, allowing for another decrease in interest rates. However, there is lots of uncertainty.

Britain signed a trade deal with India, but that is minor in comparison to talks with the US, and in general, the impact of US duties on the global and British growth trajectory.

The upcoming decision is a "Super Thursday" one in which the BoE releases its quarterly Monetary Policy Report (MPR) in addition to the regular rate decision and the accompanying meeting minutes.

Coming one day after the hold decision by the Federal Reserve (Fed), perhaps BoE Governor Andrew Bailey and his colleagues will remain cautious, potentially keeping Sterling strong.

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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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