Institutions: sterling could rise if BoE cautious on rate cuts

Sterling could strengthen as the Bank of England is likely to be cautious about cutting interest rates, says Ebury strategist Matthew Ryan. The Bank of England looks set to leave interest rates unchanged on Thursday regardless of the outcome of this week's UK economic data, which includes Monday's PMI, Tuesday's labour market report and Wednesday's inflation data.

However, these data could influence the number of people who vote against a rate cut. Nonetheless, the UK's high interest rates, resilient economic growth and the UK's continued friendly relationship with the EU will see the Pound rise against the US Dollar and the Euro through to 2025, compared to elsewhere.