ING analysts: Bank of England Governor's testimony may impact GBP trends

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.