Market participants say the Bank of England is likely to raise rates further in November and February next year. Sterling is trading around US$1.3238, while GBP/JPY is in the ¥209 range.
Sterling is trading around US$1.3238 today, while GBP/JPY is in the ¥209 range. Market participants expect the Bank of England to raise rates in November and are likely to raise rates further in February next year. Some analysts say that inflation remaining above expectations could provide grounds for further rate hikes.
Meanwhile, the market is said to have priced in 2 rate hikes by February next year, and some expect the impact on sterling to be limited even if monetary tightening takes place. Analysts expect sterling to trade in a range against the euro over the next several months.
As related foreign-exchange data, GBP/USD is reported at 1.3238, GBP/JPY at 209.47 and EUR/GBP at 0.8461.