Skip to content 
by GBP/USD—The British pound recently dipped below $1.27 after the Bank of England decided to keep the key bank rate steady at 5.25%. This decision was anticipated, with only two members of the committee voting for a rate cut, mirroring the sentiment from the previous meeting.
However, the choice not to reduce rates was “finely balanced” for some policymakers, indicating a possible policy easing later this year.
GBPUSD Fundamental Analysis – 24-June-2024
Bank of England Eyes Rate Adjustments
As a result, the likelihood of a rate cut in August has increased, and there is a growing expectation for a cut in September. Despite this, markets have fully priced November’s first 25 basis points cut. This suggests that while immediate changes are not expected, adjustments are likely on the horizon as the Bank of England navigates economic challenges.
England’s Labour Party Leads in July Election
On the political front, recent polls show the Labour Party leading ahead of the upcoming July 4th election. Prime Minister Rishi Sunak’s Conservative Party is currently trailing in second place. This political shift could impact economic policies and investor confidence moving forward.
Summary
In summary, future cuts are anticipated while the British pound has weakened due to the steady bank rate. Additionally, political changes may further influence economic conditions, highlighting the need to monitor both financial and political landscapes carefully.
About The Author
