Asia FX moves little with focus on US-China trade, dollar steadies ahead of CPI
Investing.com -- The hearing of Bank of England Governor Andrew Bailey before the Treasury Select Committee on Wednesday could have significant implications for the sterling and U.K. government bonds, also known as gilts, according to ING analyst Francesco Pesole.
The Bank of England reduced rates by 25 basis points to 4.5% in February. Recent data has suggested a more cautious approach towards further rate cuts, a sentiment that could be reflected in Bailey’s remarks, Pesole notes.
However, the analyst suggests that any short-term increases in the sterling’s value against the dollar may not be sustainable. The upcoming U.K. budget announcement at the end of March could put pressure on the currency and potentially destabilize the delicate U.K. government bond market, Pesole warns.
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