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Mar 19 - 07:55 AM

GBP/USD - Could GBP/USD Rise To 1.30 Tempt BoE To Cut?

By Robert Howard  —  Mar 19 - 05:35 AM

March 19 (Reuters) - Might cable's climb to a 19-week peak of 1.3010 tempt some dovish-leaning Bank of England Monetary Policy Committee members to bring forward their expected votes for an interest rate cut from May to this week?

It is a question worth asking as the clock ticks towards U.S. tariff news on April 2, which could raise the risk of a recession in Britain.

The recent strengthening of the pound against the dollar may help to counteract upward pressure on UK CPI, which rose to a 10-month high of 3% in January - a month in which GBP/USD plumbed a 14-month low of 1.21.

With Swati Dhingra and Catherine Mann certain to vote for a rate cut on Thursday, and Huw Pill and Megan Greene certain to vote for a hold, the five "swing" voters who will decide the outcome are Governor Andrew Bailey, Clare Lombardelli, Dave Ramsden, Sarah Breeden and Alan Taylor.

Related column/comment:
GBPUSD


(Robert Howard is a Reuters market analyst. The views expressed are his own. Editing by Alison Williams)

Source:
London Stock Exchange Group | Thomson Reuters

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