Uncertainty Over BOE Tightening Could Hold Back Sterling -- Market Talk

0808 GMT - Sterling could struggle to rise much in the near-term given uncertainty over the prospect of further interest-rate rises by the Bank of England, Commerzbank's Michael Pfister says in a note. The BOE raised rates by 25 basis points Thursday with one member preferring a 50bps move. BOE Governor Andrew Bailey signalled further rate rises but gave no indication of the timetable, Pfister says. The BOE could deliver a second rate rise in February, he says. "However, if the situation in the Middle East has stabilized by then and energy exports have normalized, the case for further interest rate hikes will be weaker." Sterling falls 0.4% to $1.3396 versus a stronger dollar while the euro falls 0.1% to 0.8336 pounds. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

November 06, 2026 03:08 ET (08:08 GMT)