ING analysts: Bank of England Governor's testimony may impact GBP trends
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ING analyst Chris Turner stated that if Bank of England Governor Andrew Bailey raises expectations for further rate cuts during his speech to the Treasury Select Committee tonight at 22:15 (UTC+8)—with the earliest possible cut in March—the pound may decline. Currently, the currency market is pricing in an 80% probability of a 25 basis point rate cut in March. If Bailey's testimony provides sufficient evidence supporting a March rate cut, it could prompt the market to bet that the Bank of England will cut rates by more than 50 basis points this year.
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