GBP Edges Higher as BoE Signals Stability Ahead of Key US Inflation Data

The Pound Sterling (GBP) strengthened against the US Dollar (USD) on Tuesday, rising by over 0.08% as investors digested comments from Bank of England (BoE) policymakers before the UK Treasury Select Committee.

BoE Governor Andrew Bailey said the UK economy is not close to entering a recession, describing recent economic data as 'broadly solid.'

However, he acknowledged that the labor market is weakening due to declining hiring rates. Other policymakers delivered mixed but relatively cautious messages.

Alan Taylor argued that maintaining interest rates at a moderately restrictive level provides protection against inflation risks, while David Ramsden noted that domestic inflation pressures remain contained.