BoE rate hike expectations delayed to November
The Bank of England meeting this week poses risks for the Pound. Markets now expect the first rate hike in November, with lower energy prices potentially reducing the need for tightening.
The EUR/GBP is holding strong support around 0.8610/15. A Labour by-election victory could also weigh on sterling, potentially starting the Labour leadership contest.
The BoE stance and UK politics are key factors influencing the Pound’s value. Governor Andrew Bailey must balance the need for rate hikes with the impact of lower energy prices.