Pound Sterling trades cautiously on intensifying BoE dovish speculation.
The Pound Sterling (GBP) trades with caution against its major currency peers at the start of the week. The British currency faces slight selling pressure amid growing expectations that the Bank of England (BoE) will cut interest rates at its December policy meeting.
Analysts at Morgan Stanley, Citigroup, and UBS Global Research have shifted their stance towards the December policy meeting and expect the BoE to cut interest rates by 25 basis points (bps) to 3.75%.
BoE dovish expectations have been prompted due to a change in the central bank’s language on the monetary policy guidance. The central bank eliminated “careful” from its guidance of “gradual downward monetary policy path” in the monetary policy announcement on Thursday, which it stressed in the September policy meeting.
In last week’s monetary policy announcement, the BoE held its interest rates steady at 4%, with 5-4 majority.
Source: Fxstreet
