British Pound Faces Potential Decline Amid Bank of England Rate Decision

On February 5, according to Jin10, Michael Pfister from Commerzbank stated in a report that if the Bank of England maintains its interest rates but raises expectations for future rate cuts, the British pound could face further decline. The market anticipates a 7-2 vote in favor of holding rates steady. Pfister noted that if the vote shows greater division than expected, the market might preemptively bet on rate cuts, negatively impacting the pound. Additionally, the Bank of England will release its first economic forecast since the UK's budget announcement last November. Pfister suggested that these forecasts could pave the way for more significant rate cuts.