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TD Securities: Bank of England to Cut Interest Rates by 25 Basis Points, Pound Likely to Remain Weak
Market Data, November 6 — TD Securities states that the Bank of England is expected to cut interest rates by 25 basis points in November. This decision is described as a "balanced move," and it is anticipated to pass with a 5-4 voting result.
At the same time, policymakers may cite persistently high inflation as a reason to adopt a more cautious stance toward further easing, compared to previous expectations.
Data released in the coming months will be crucial in determining the timing of any additional rate cuts. Regarding the pound, the firm warns that whether the Bank of England takes action now or delays until later in the year, the pound may continue to remain under pressure.
TD Securities expects the euro to GBP to further strengthen, while the GBP to USD could face ongoing downside risks.