Cross currents for GBP – slower pace of rate cuts vs. wobbly confidence on fiscal

MUFG note conflicting influences on GBP:

• slower pace of interest-rate cuts by the Bank of England should support, by keeping rates higher for longer relative to other major economies

But:

• loss of investor confidence in the Labour government’s fiscal consolidation plan could pose a downward risk (via via any ongoing selloff in gilts)

Bank of England due 7 November 2024 at 0700 US Eastern time:

• This snapshot from the ForexLive economic data calendar, access it here.
• The times in the left-most column are GMT.
• The numbers in the right-most column are the ‘prior’ (previous month/quarter as the case may be) result. The number in the column next to that, where there is a number, is the consensus median expected.

This article was written by Eamonn Sheridan at www.forexlive.com.