GBP is rising higher. Overview for 21.05.2024

The British pound is strengthening its position against the US dollar. The current GBPUSD exchange rate stands at 1.2709.

The pound appears steady, supported by the local decline in the US dollar and comments from monetary policymakers. In his speech yesterday, Bank of England Deputy Governor Ben Broadbent did not rule out a summer interest rate cut.

However, Broadbent provided no specific information indicating that this scenario is inevitable. Market expectations show the likelihood of lowering the interest rate to 5.00% from the current 5.25% at the next meeting in June.

The Bank of England continues to gather information and data on the state of the UK’s economic system. If the situation continues to develop in line with its forecasts, the bank rate will likely change.

On Wednesday, the UK will release inflation statistics, crucial for understanding the BoE’s future actions. According to the consensus forecast, the consumer price index decreased to 2.1% in April from 3.2% in March. The Bank of England’s CPI target is precisely 2.0%.