The post Pound Sterling extends gains as BoE looks set to keep rates on hold appeared on BitcoinEthereumNews.com.

The Pound Sterling (GBP) trades higher against its major currency peers on Wednesday as investors await the Bank of England’s monetary policy announcement on Thursday. The British currency gains on expectations that the BoE will leave interest rates unchanged at 3.75% in its first policy meeting of 2026. Market participants anticipate the United Kingdom (UK) central bank to hold borrowing rates steady after slashing them by 25 basis points (bps) in December, while guiding that the monetary policy will remain on a “gradual downward path”. Out of the nine-member-led-Monetary Policy Committee (MPC), Swati Dhingra and Alan Taylor are expected to vote for an interest rate cut. In mid-January, Taylor said in a summit in Singapore that he sees inflation returning to the central bank’s 2% target in “mid-2026, more quickly than having to wait until 2027”, and projected that interest rates could “normalise to the neutral (level) sooner rather than later”. In the December policy meeting, officials also expressed confidence that “inflation will come closer to 2%” in the second quarter of 2026. Alongside the BoE’s interest rate decision, investors will focus on the quarterly Monetary Policy report that will show inflation expectations over the next two years and the current state of the economy. Daily Digest Market movers: Pound Sterling ticks up against US Dollar ahead of US data The Pound Sterling is up 0.2% to near 1.3725 against the US Dollar (USD), and flat around 0.8630 against the Euro (EUR) during European trading hours on Wednesday. The GBP/USD pair edges higher as the US Dollar trades subdued ahead of the release of the United States (US) ADP Employment Change and the ISM Services Purchasing Managers’ Index (PMI) data for January during the North American trading session. At the time of writing, the US Dollar Index (DXY), which tracks…

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Filed under: News - @ February 4, 2026 9:26 am