Sterling slips as investors pare BoE rate hike bets ahead of Jackson Hole
TLT•Sterling eases as BoE hike expectations fade
Sterling eased to a one-week low against the dollar and the euro as investors pared expectations for an interest rate hike by the Bank of England this year and shifted their focus to the annual symposium on monetary policy at Jackson Hole in the U.S.
The British pound dipped 0.1% to $1.3578 on Thursday, retreating from last week's six-month high. It was off nearly 0.1% at 85.75 pence versus the euro.
LSEG data showed that traders now expected the central bank to hike interest rates by 24.7 basis points by December, meaning they no longer expect a 25-bp hike by the BoE this year.
This reflected that markets were slowly coming into alignment with most economists, who have long said in Reuters polls that the BoE is likely to hold rates steady this year.
