Economists at ING analyze GBP outlook ahead of the Bank of England (BoE) meeting next week.
Staying supported into the BoE meeting
It is important to note how high gilt rates themselves begin to exert their strong influence on the economy. The distress in the mortgage market is the most direct example, with major lenders hiking rates and some drawn-out mortgage offers after tightening recent expectations.
It is, still, too early to factor that – or any implications for the housing market – into Sterling, which will probably continue to find support into next week’s CPI and BoE meeting.
EUR/GBP could move closer to the 0.8500 key support after today’s ECB decision.
