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2025.09.1513:43:52UTC+00Sterling Rises Toward 10-Week High Ahead BoE Meeting

The British pound surged beyond the $1.360 mark, nearing a 10-week high, as the markets gear up for a pivotal week with significant central bank decisions and UK economic data releases on the horizon. The Bank of England is anticipated to maintain its policy rate at 4% this Thursday and decelerate its £100 billion annual bond-shedding process. The release of UK inflation data for August is slated for Wednesday, with a year-on-year forecast of 3.8%, consistent with July's 18-month peak. Subsequent data releases will include the employment report and retail sales figures later in the week. Currently, there is a one-in-three probability that the BoE will enact a rate cut by December. In parallel, the Federal Reserve is projected to reduce rates by 25 basis points on Wednesday, with traders anticipating at least two additional cuts by the end of 2025.

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