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Election result gives green light to August BoE rate cut – GBP to drift lower

This (in brief) from ING rapid response to the UK election results, based on the exit polling:

Election result gives green light to August rate cut
Markets are pricing a 60% chance of an August rate cut, and we think that’s too lowwatch out for comments from BoE rate-setters next week, which might seek to boost expectations for an August cutDon’t forget that some policymakers thought the decision was finely balanced at the most recent June meeting, and the BoE has played down recent upside surprises to inflationWe expect three rate cuts this year, starting in AugustBank of England policy plans remain the most important domestic driver for the poundOur call remains for a move to 1.25 in Cable and to 0.86 in EUR/GBP on the back of Bank of England easing this summer

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Sterling update, barely moved:

The Bank of England next meet on August 1.

After that the balance of 2024 meetings:

September 19November 7December 19

This article was written by Eamonn Sheridan at www.forexlive.com.

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