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by The British pound has risen above $1.32 (GBP/USD) as investors focus on upcoming UK inflation data and the Bank of England (BoE) meeting. The BoE will likely keep interest rates steady at 5% this week. Markets believe there’s an 80% chance of no change, especially after last month’s 0.25% rate cut.
GBPUSD Fundamental Analysis – 17-September-2024
Key Inflation Data on the Horizon
Important UK inflation data will be released on Wednesday, just a day before the BoE’s policy decision. Recent reports showed that the UK economy did not grow in July, missing the expected 0.2% increase. This caused the pound to drop to its lowest level since August 20.
Future Rate Cuts Expected
Investors predict that the BoE will start cutting rates in November and possibly drop to 3% by September 2025. This shift is anticipated due to the current economic stagnation and the need to stimulate growth.
Conclusion
The rise of the British pound is driven by anticipation of key inflation data and the BoE’s upcoming meeting. While the BoE is expected to keep rates unchanged for now, future rate cuts are likely as the UK economy faces challenges.
Investors are closely watching these developments to gauge the pound’s future movements.
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