BoE's Softer Stance Weighs on Sterling Amid Fiscal Uncertainty

The Bank of England (BoE) has left its policy rate at 3.75% for a fifth consecutive meeting, with a vote split of 6-3.

According to Brown Brothers Harriman's Elias Haddad, this decision leaves room for UK rate expectations to be revised lower, which would be a headwind for the British Pound (GBP).

The BoE also signaled that it may slow quantitative tightening, but this move is unlikely to offset the upward pressure on gilt yields from fiscal policy uncertainty.