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2025-12-18 23:14:06
[The pound's relief rally following the Bank of England's decision may be short-lived] ING analysts said in a report that the pound's relief rally following the Bank of England's narrow 5-4 vote to cut interest rates on Thursday may be short-lived. They stated that the euro should remain above 0.87 against the pound, given the possibility of two more rate cuts by the Bank of England next year. "We see no reason to change our forecast that the euro will rise moderately towards 0.90 by the end of 2026, with some additional upside risks around the UK local elections in May," they said. However, they added that the pound could rise against a weaker dollar, reaching $1.35 by the end of the year and $1.36 in 2026.
