Bank of England

According to its Governor Andrew Bailey, the Bank of England might have to raise interest rates further as he continues his crusade to push back against growing market expectations for rate cuts in 2024.

The Bank of England will keep interest rates unchanged until 2025, according to one of the UK's biggest banks.

The Pound to Euro exchange rate rose to test 1.15 on Thursday after a European Central Bank Governing Council member confirmed further rate hikes were not required.

The jump in the value of Pound Sterling seen last week appears to be something of a false dawn for those wanting a stronger exchange rate as the UK currency comes back under pressure amidst a softening global market backdrop and increased bets the Bank of England will cut interest rates before long.

The Bank of England's Chief Economist has verified market bets for the first interest rate cut by the Bank of England to fall towards the middle of 2024, in what amounts to the first significant admission lower interest rates lie ahead.

The Pound recovered from its lows after the Governor of the Bank of England pushed back at rising expectations that the Bank of England would cut rates by as early as the third quarter of 2024.

The British Pound was higher against the Euro, Dollar and other major currencies after the Bank of England kept interest rates at 5.25% and managed to deliver a credible message that interest rates would stay at current levels for an extended period.

The Governor of the Bank of England has all but confirmed interest rates won't rise in November in comments that can add further pressure on the Pound.

Markets and analysts alike have brought forward their expectations for interest rate cuts at the Bank of England following a decision by Threadneedle Street to keep rates unchanged on September 21, a development that explains the ongoing weakness in the Pound.

Pound Sterling slumped against the Euro, Dollar and other major currencies after the Bank of England said it had ended its interest rate hiking cycle, believing that inflation was now on course to fall sharply over the coming months.

The Bank of England's apparent plan of raising interest rates to 5.50% this week but then calling a halt to the rate hiking cycle is tantamount to a mistake, according to a prominent economist.

A tough day for the British Pound was made tougher by the Bank of England Governor Andrew Bailey who was keen to stress the end of the interest rate hiking cycle was now close at hand.

The Bank of England will keep interest rates at elevated levels for a protracted period according to Chief Economist Huw Pill, in what amounts to fresh confirmation a return to lower interest rates in 2024 is unlikely.

When will interest rates go down? Money market data and guidance from the Bank of England suggest the first interest rate cut could occur towards the autumn of 2024, but there are signs the cost of borrowing is already coming down.

Markets currently see non-negligible odds of 20% that the Bank of England skips a rate hike in September, a development that could potentially result in a decent decline in the value of the Pound.

The Pound to Dollar exchange rate entered the final session of the week steadier on its feet after testing a major level of technical support on the charts previously but its recovery prospects are undermined by a deteriorating economic outlook while the outlook would become bleaker still if interest rates rise further in the months ahead.

The Pound initially fell in the wake of the Bank of England's decision to hike Bank Rate to the highest level in 15 years but it soon recovered as market expectations for further interest rate hikes converged with the Bank of England's guidance as to how many more it would likely deliver.

The British Pound tracked bond yields and fell further against the Euro and Dollar after the Bank of England raised interest rates by 25 basis points, representing a downshift from the 50bp hike delivered in June.

Pound Sterling has remained an outperformer among major currencies for the year in recent trading but with market interest rate assumptions implying close to unprecedented monetary tightening still to come for the economy, the opportunity or imperative for protecting against future currency losses is rarely greater.

Some economists say a widely monitored private sector survey is an indication that UK inflation could fall notably further by year-end, leading the Bank of England (BoE) to "pause" its interest rate cycle soon, but the broader implication is that the BoE may already 'overtightened' and could need to consider cutting borrowing costs in the near future.