Sterling Slips as Markets Await BoE Policy Signals

The British pound has slipped against the dollar as investors await policy signals from the Bank of England. The central bank's Governor Andrew Bailey, along with Deputy Governor Dave Ramsden and Monetary Policy Committee members Megan Greene and Alan Taylor, will testify before the Treasury Select Committee on Tuesday.

Market expectations suggest that interest rates will remain at 3.75% next week, but rising oil prices and a recent split vote keep tightening risks in view. Barclays economists expect a 6-3 vote in favor of holding rates as their baseline, with Greene, Mann, and Pill dissenting.

Retail data has added to the mixed backdrop for sterling, with British retail sales growth slowing to a four-month low in August. The pound's decline comes as broader geopolitical tensions continue to weigh on investor sentiment, with oil prices reaching multi-week highs after an Iran-backed attack on Saudi energy facilities.