Pound Sterling gains ahead of US presidential election
The Pound Sterling (GBP) trades broadly unchanged against its major peers, with investors focusing on the Bank of England’s (BoE) policy meeting on Thursday. The BoE is expected to cut interest rates by 25 basis points (bps) to 4.75%. This would be the second interest rate cut of the year. Seven Monetary Policy Committee (MPC) members are expected to vote for further policy easing, while the remaining two will likely support keeping rates steady.
BoE external member Catherine Mann is expected to be one of two members who would vote to keep interest rates at their current levels. In a panel discussion at the sidelines of International Monetary Fund (IMF) meetings on October 24, Mann – an outspoken hawk – welcomed the release of the soft inflation data but emphasized the need for more slowdown. “In order to get to a target consistent with a 2% inflation rate, services (inflation) still have a long way to go,” Mann said. When asked about her current interest rate stance, Mann said that rate cuts are premature at this stage.
Source: FXStreet
