The British pound fell against the US dollar on Thursday, after rising since the beginning of the week and touching its highest level in four weeks, but it began to decline today, as the central bank is expected to cut interest rates.
Markets are taking into account a 94% probability that the Bank of England will cut interest rates by 25 basis points to 4.5% on Thursday, after which investors do not see a second easing until next June.
Forecasts indicate that the monetary policy committee wants to ease faster, but stable inflation does not allow it to do so yet.
Markets expect the Bank of England to cut interest rates three times in 2025, and a total of 85 basis points of easing is priced in this year especially as growth slows, and investors are concerned about the stagnation of the British economy.
