The British pound sterling has risen to four-month highs against the US dollar. The current GBPUSD exchange rate stands at 1.2767.
The Bank of England kept its monetary policy at the December meeting without any changes. The interest rate remained at 5.25% per annum.
The market noticed that the British regulator spoke about prospects or estimates much more reluctantly than the ECB or Fed, which might indicate that the BoE is considering reducing the rates.
According to market forecasts, in 2024, the Bank of England might decrease the interest rate four times, starting in May.
At the same time, three out of nine Committee members voted to raise the rate, as was the case in November. The CB has not yet commented on the future steps of its monetary policy. The only certainty is that, according to the regulator, the rates might remain restrictive for a long time.
The reduced attractiveness of the US dollar supports the pound's position more than the Bank of England's decisions do.