Pound Rallies as Traders Increasingly See BOE Cuts Lagging ECB
- Sterling rises to a more than two-month high against the euro
- Market pushes likely timing of first decrease to September
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The pound rose to the strongest in over two months against the euro after UK inflation slowed less than expected, threatening to delay interest-rate cuts from the Bank of England.
Traders pared bets on monetary easing from the BOE aggressively and now only see the first reduction coming in September, three months after the first expected cut from the European Central Bank.