Economics
Pound Rises Before BOE’s First Rate Decision Since Brexit Vote
- Sterling approaches highest level in more than a week
- Chances of BOE rate cut seen at 86%, from 11% on June 23
Patient Bank of England Relieves Pressure on Pound
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The pound advanced as traders awaited the Bank of England’s first interest-rate decision since the U.K. voted to leave the European Union.
Sterling strengthened against 13 of its 16 major peers, approaching its highest level in more than a week versus the dollar. The U.K. currency’s rally came even amid rising speculation that the central bank will cut its benchmark rate for the first time since 2009 to support the U.K. economy from the fallout of Brexit. Futures pricing shows the chance of a rate cut at this meeting has climbed to 86 percent, compared with 11 percent on June 23, the day of the nation’s referendum.