Jin10 data reported on May 6, economist Enrique Diaz-Alvarez from Ebury stated in a report that if the Bank of England hints that the market's expectations for interest rate cuts are excessive, the British pound may be boosted. LSEG data shows that the market expects the Bank of England to cut interest rates by 90 basis points for the remainder of 2025. He noted that the Bank of England will find it difficult to meet these expectations, and the central bank "may want to maintain selectivity." Additionally, the pound should benefit from a Labour government and closer UK-EU relations.
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Ebury: If the Bank of England believes that the bets on interest rate cuts are excessive, the British Pound may strengthen.
Jin10 data reported on May 6, economist Enrique Diaz-Alvarez from Ebury stated in a report that if the Bank of England hints that the market's expectations for interest rate cuts are excessive, the British pound may be boosted. LSEG data shows that the market expects the Bank of England to cut interest rates by 90 basis points for the remainder of 2025. He noted that the Bank of England will find it difficult to meet these expectations, and the central bank "may want to maintain selectivity." Additionally, the pound should benefit from a Labour government and closer UK-EU relations.