Pound to Euro Rate Forecast: BoE Meeting Sparks Market Jitters

The Pound to Euro exchange rate has been trading around 1.1650 ahead of a key Bank of England meeting, where Governor Andrew Bailey will face a tough decision on interest rates.

Markets are pricing in an aggressive tightening cycle through 2027, which leaves the Sterling vulnerable if the BoE signals that investors have overestimated their expectations.

ING forecasts that the Pound to Euro exchange rate will drop to 1.11 by the end of next year as the Bank of England fails to meet market expectations, while SEB expects it to hold steady for now but with more moderate losses to 1.1360 by the end of 2027.