GBPUSD Stable at $1.25 Amid BoE Policy Expectations

The British pound has settled at around $1.253, influenced by hopes that the Bank of England (BoE) might adopt a gentler approach to monetary policy than the US Federal Reserve. Market trends show an 80% likelihood that the BoE will make its initial policy move in August.

There’s also a 60% chance they might reduce rates later in the year. On the other hand, expectations for the Federal Reserve to lower rates in September have decreased. This change is due to slow progress in achieving a 2% inflation target. Recently, BoE Governor Andrew Bailey mentioned that UK inflation will likely meet the 2% goal.

However, his colleagues Megan Greene and Huw Pill were more cautious, stating that it’s too early to consider cutting interest rates.

GBPUSD Stable at $1.25 Amid BoE Policy Expectations