The British pound sterling, paired with the US dollar, is being pulled down. The current GBPUSD exchange rate stands at 1.2675.
The Bank of England will meet today to decide on the interest rate. The rate will likely remain at 5.25% per annum.
The BoE will allow its counterparts to lead, initiating the reduction in the cost of borrowing after the Federal Reserve and the ECB. This is expected to occur no earlier than June or July. More information will be revealed today when the UK regulator comments on its decisions and provides insights into future steps.
It is worth paying attention to the inflation and employment market assessments, as they may provide an understanding of the BoE’s interest rate prospects for the whole year.
A stable interest rate for the pound is positive, but the robust USD leaves its counterpart with little chance.