Citi: The delay in pricing in interest rate cuts boosted the pound, focusing on the tone of the BoE's statement

2023-12-14 03:50:56

Sina Financial News Citigroup: The Bank of England is decoupled from the European Central Bank/Federal Reserve, and the market expects the former to cut interest rates by 25 basis points by mid-2024 (much later than the pricing of the European Central Bank/Federal Reserve), which is one of the reasons for the strength of the pound. The reason for the postponement of interest rate cut expectations is that the UK Autumn Fiscal Statement believes that the recent fiscal easing will continue into 2024 and that the Bank of England may have to catch up next year. Therefore, the market will be closely watching the tone of the BoE’s statement.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.