Sterling's Struggle: Inflation and Rate Cut Speculations
The British pound strengthened slightly against a weakening dollar but fell versus the euro. Speculation increased over whether the Bank of England might cut interest rates more aggressively as the UK's inflation soared unexpectedly to 3.6%. Investors continue to weigh economic data and its impact on monetary policy.
The British pound strengthened marginally against a softer dollar but dipped against the euro, igniting investor speculation on the Bank of England's possible rate cuts.
With UK's inflation reaching 3.6%, analysts weigh if rates could be slashed more aggressively than the anticipated 25 basis points per quarter.
Mixed economic indicators, including a drop in sterling against the euro, have kept the market cautious as speculation mounts over an expected rate cut in August and further reductions by 2026.
(With inputs from agencies.)
Advertisement
Google News