In the early European session on Friday, EUR/GBP flat lines at 0.8760.
At its December meeting on Thursday, the Bank of England decided to lower interest rates from 4.0% to 3.75%.
As was largely anticipated, the ECB maintained rates on quo on Thursday.
During Friday's early European session, the EUR/GBP cross is trading flat at 0.8760. This action comes in response to market expectations for a stable European Central Bank (ECB) policy and the Bank of England's (BoE) interest rate reduction. Later on Friday, the UK Retail Sales report for November will be highlighted.
Following declining UK inflation data, the market widely anticipated the UK central bank's decision to lower its primary interest rate by 25 basis points (bps) to 3.75% on Thursday. "The evolution of the forecast for inflation will determine the extent of additional easing in monetary policy," said BoE Governor Andrew Bailey. If economic indicators continue to provide the BoE greater leeway, analysts predict that it will make its next cut in early 2026.
However, the European Central Bank (ECB) did not change its key policy rate. The choice was in keeping with what the market anticipated. During the press conference, ECB President Christine Lagarde stated that policy is "in good place," implying that rates will stay on hold for a considerable amount of time. next the rate decision, a new estimate indicated that economic growth would be higher and that inflation would rise to 2% in 2028 after remaining below that level for the majority of the next two years.
At its December meeting on Thursday, the Bank of England decided to lower interest rates from 4.0% to 3.75%.
As was largely anticipated, the ECB maintained rates on quo on Thursday.
During Friday's early European session, the EUR/GBP cross is trading flat at 0.8760. This action comes in response to market expectations for a stable European Central Bank (ECB) policy and the Bank of England's (BoE) interest rate reduction. Later on Friday, the UK Retail Sales report for November will be highlighted.
Following declining UK inflation data, the market widely anticipated the UK central bank's decision to lower its primary interest rate by 25 basis points (bps) to 3.75% on Thursday. "The evolution of the forecast for inflation will determine the extent of additional easing in monetary policy," said BoE Governor Andrew Bailey. If economic indicators continue to provide the BoE greater leeway, analysts predict that it will make its next cut in early 2026.
However, the European Central Bank (ECB) did not change its key policy rate. The choice was in keeping with what the market anticipated. During the press conference, ECB President Christine Lagarde stated that policy is "in good place," implying that rates will stay on hold for a considerable amount of time. next the rate decision, a new estimate indicated that economic growth would be higher and that inflation would rise to 2% in 2028 after remaining below that level for the majority of the next two years.
