- The EUR/GBP maintains its position before the decision on the interest rates of the Bank of England scheduled for Thursday.
- It is anticipated that the BOE will maintain its interest rate without changes in 4.25% on Thursday.
- The euro receives support from the hard line tone around the policy prospects of the ECB.
The EUR/GBP extended its profit streak for the fourth consecutive day, quoting about 0.8550 during Thursday’s Asian hours. The currency crossing remains stable before the decision on the interest rates of the Bank of England (BOE) scheduled for later in the day.
It is widely expected that the BOE maintains its interest rate without changes in 4.25% at the June policy meeting after the consumer price index (CPI) on Wednesday, which showed an inflation rate of 3.4% year -on -year in May, remaining well above the 2% target of the BOE. Reading was as expected compared to 3.5% in April. However, markets are still valuing a 25 basic points rate cut in August.
The EUR/GBP crossing also receives support as the euro (EUR) gains ground in front of its peers, backed by the hard line tone around the policy prospects of the European Central Bank (ECB). The president of the ECB, Christine Lagarde, said that rates reductions are coming to an end, since the Central Bank is now “in a good position” to deal with the prevailing uncertainties.
On Wednesday, the Governing Council member of the ECB, Mario Centeno, highlighted his concerns about the growth prospects of the European economy and argued that inflation will not be 2% without growth. “We need a stronger economy to be compatible with 2%inflation, that is my main position,” Centeno added. In addition, another member, Fabio Panetta, said the Flexible BCE approach regarding monetary policy decisions in the midst of high risks due to the conflict between Israel and Iran. Panetta added that inflation in the eurozone is likely to remain below the 2% target for a prolonged period, according to Reuters.
Economic indicator
Decision on the BOE interest rate
He Bank of England Announce your decision on the interest rate at the end of your eight meetings scheduled per year. If the BOE adopts a hard line posture on the inflationary perspectives of the economy and elevates interest rates, it is generally bullish for sterling pound (GBP). Similarly, if the BOE adopts a moderate vision of the United Kingdom economy and keeps interest rates without changes, or reduces them, it is considered bassist for the GBP.
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Next publication:
Play Jun 19, 2025 11:00
Frequency:
Irregular
Dear:
4.25%
Previous:
4.25%
Fountain:
Bank of England
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
