OECD Forecasts Bank of England Rate Hold This Year, Cuts in 2024
The OECD projects the Bank of England will keep rates unchanged through 2023 before beginning an easing cycle, a bearish signal for sterling.
GBPUSD
The Organisation for Economic Co-operation and Development (OECD) has published its interest rate forecast for the Bank of England, indicating no rate hikes for the remainder of this year. The outlook then anticipates cuts to follow, suggesting a shift toward monetary easing.
If realized, this trajectory would be negative for the pound, as a prospective loosening of policy typically weighs on a currency. The forecast implies the BoE will hold its current rate through 2023 before reducing it in 2024.
Source: FXStreet Forex News