GBP Weakens Ahead of BoE Meet Amid Hawkish Hold Expectations

The British Pound is trading near its lowest level since July 30 against the U.S. Dollar, with expectations centered on the Bank of England (BoE) keeping interest rates unchanged at its upcoming policy announcement.

Market participants are looking for guidance from the BoE on the possibility of a November rate hike, which is currently priced in with an 80% probability according to money markets.

Analysts at MUFG/BTMU expect the BoE to deliver a 'fairly hawkish hold' at the meeting, signaling that a rate increase in November is likely if energy pricing remains elevated.