Sterling Vulnerable as BOE Rate-Rise Bets Look Overdone -- Market Talk

Dow Jones03-23

0906 GMT - Market pricing for Bank of England interest-rate rises looks overdone and this poses a risk to sterling, Monex Europe analysts say in a note. The market is pricing in nearly four rate rises by year-end, LSEG data show. Such an aggressive path of rate rises is unlikely given the weak domestic growth outlook and building labor market slack, the analysts say. For now, sterling's direction will be directed by risk sentiment and oil prices in the absence of U.K. data and BOE speeches Monday, they say. Sterling falls 0.2% to $1.3313 against a stronger dollar but the euro drops 0.1% to 0.8660 pounds. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

March 23, 2026 05:06 ET (09:06 GMT)

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