The pound sterling witnessed a decline in the European market on Tuesday against a basket of global currencies, continuing its losses for the second day in a row against the US dollar, due to the increasing possibility of the Bank of England cutting interest rates sooner than the Federal Reserve’s cuts, so now eyes are turning towards The hearing will be held later today for Bank of England officials on the monetary policy report issued after the February 1 meeting, as comments issued by British monetary policy makers are expected to provide clearer evidence about the future of interest rates in the United Kingdom.

The pound fell against the dollar by approximately 0.2% to ($1.2579), from the opening price of trading at ($1.2597), in addition to ending Monday’s trading down by less than 0.1% against the dollar, in the first loss in the last three days, amid trading Weak control of the foreign exchange market.

Note that the Bank of England said at its last meeting: It is expected that consumer price index inflation will temporarily decline to a target of 2% in the second quarter of 2024 before it rises again in the third and fourth quarters.
The bank added that although service price inflation and wage growth declined somewhat more than expected, the main indicators of continued inflation remain high.
Bank of England Governor Andrew Bailey said at the press conference: The return of inflation to the 2.0% target in April is not a case of “mission accomplished” as service price pressures remain.
Bailey explained: The Monetary Policy Committee needs to see more evidence that inflation is expected to fall to 2%, before they can consider cutting interest rates.

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