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2025-12-18 01:54:44
[MUFG Bank: Sterling Faces Further Downside Risk] Derek Halpenny of MUFG Bank noted in a report that the pound faces further downside risk as the Bank of England's rate-cutting cycle has a longer road ahead than most other G10 central banks. He stated that Wednesday's weaker-than-expected UK inflation data should dispel any doubts about a rate cut by the Bank of England on Thursday. He also indicated that the Bank of England may cut rates again next February when inflation expectations are low. "The market has not yet priced in this expectation, so we believe there is room for short-term yields to fall further, which will put greater downward pressure on the pound."
