Pound Sterling tumbles as BoE cuts interest rates by 25 bps to 5%
The Pound Sterling (GBP) faces a sharp selling pressure against its major peers in Thursday’s London session. The British currency weakens as the Bank of England (BoE) has cut its key borrowing rates by 25 basis points (bps) to 5%, as expected. The rate-cut move came with a 5-4 majority in the Monetary Policy Committee (MPC) vote, which was also in line with market expectations. Policymakers who voted for a rate cut were BoE Governor Andrew Bailey, Sarah Breeden, Swati Dhingra, Dave Ramsden, and Clare Lombardelli.
BoE's latest forecast report for the year-end shows that the bank rate will be at 4.9%, higher from May's forecast of 4.8%. This suggests that there will be no more rate cuts this year. The bank sees wage growth momentum at 5%, which is similar to prior projections. Read more...
GBP/USD under pressure as market anticipates Bank of England rate decision
The British Pound Sterling continues to decline steadily against the US dollar. The GBP/USD pair is trending towards 1.2848. On the one hand, the pressure from the USD rate is evident. On the other hand, investors are awaiting the outcome of today's Bank of England meeting and its decision on interest rates.
There is speculation that the BoE will lower the interest rate from 5.25% to 5.00% today. The inflationary environment, coupled with the state of the employment market in the UK, supports this adjustment. The probability of a rate cut is currently estimated at 65%. Read more...
GBP/USD Forecast: Pound Sterling could rally with a BoE hold
After posting small gains on Wednesday, GBP/USD came under renewed bearish pressure and fell to its weakest level in three weeks below 1.2800 in the European morning on Thursday.
The US Dollar (USD) struggled to find demand in the American session on Wednesday and helped GBP/USD edge higher. The Federal Reserve (Fed) left its monetary policy settings unchanged as expected after the July meeting. In the post-meeting press conference, Fed Chairman Jerome Powell noted that there was a "real discussion" about the case for reducing rates at the meeting, adding that a rate cut could be on the table in September. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

AUD/USD: Extra gains need to clear 0.6400
AUD/USD rose for the third day in a row, approaching the key 0.6400 resistance on the back of the acute pullback in the US Dollar amid mounting recession concerns and global trade war fear.

EUR/USD: Powell and the NFP will put the rally to the test
EUR/USD gathered extra steam and advanced to multi-month peaks near 1.1150, although the move fizzled out somewhat as the NA session drew to a close on Thursday.

Gold looks offered near $3,100
Prices of Gold remain on the defensive on Thursday, hovering around the $3,100 region per troy ounce and retreating from earlier all-time peaks near the $3,170 level, all against the backdrop of investors' assessment of "Liberation Day".

Interoperability protocol hyperlane reveals airdrop details
The team behind interoperability protocol Hyperlane shared their upcoming token airdrop plans happening at the end of the month. The airdrop will occur on April 22, and users can check their eligibility to receive $HYPER tokens via a portal provided by the Hyperlane Foundation by April 13, the team shared in a press release with CoinDesk.

Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.