Pound Steady as Investors Await Central Bank Decisions
GBP/USD gained momentum during early European trading on Monday, driven by a weaker US dollar (USD). The currency pair is currently trading near its lowest level since December 2025. Traders may be cautious ahead of the upcoming interest rate decisions by the US Federal Reserve (The Fed) and the Bank of England (BoE) this week.
The Fed is expected to keep its benchmark federal funds rate steady in the 3.50%–3.75% range at its upcoming March meeting on Wednesday. Due to persistent inflation risks, many analysts have pushed back expectations for the next interest rate cut to September.
“War… poses downside risks to economic growth and upside risks to inflation, so the central bank’s response depends heavily on the current context, particularly whether inflation has been above, at, or below target,” said Carol Kong, a currency strategist at the Commonwealth Bank of Australia.
The Bank of England is expected to keep interest rates unchanged at 3.75% when it meets on Thursday. Oxford economists say the worst-case scenario where An oil price rise to $140 per barrel would push inflation significantly higher and send the UK economy into a mild recession. (Cp)
Source: Newsmaker.id
