In the early European session on Thursday, the EUR/GBP drops 0.44% to a level close to 0.8590.
Amid worries about a recession brought on by tariffs, the ECB is anticipated to lower interest rates on Thursday.
In March, UK inflation decreased to 2.6% YoY, strengthening the argument for a rate cut by the BoE.
Some sellers are drawn to the EUR/GBP cross at about 0.8590 on Thursday during early European trading hours. As the European Central Bank (ECB) is expected to announce a 25 basis point (bps) rate drop later in the day, the Euro (EUR) depreciates vs the GBP.
As inflation slows and tariff threats increase, the European Central Bank is anticipated to lower its benchmark interest rate for the sixth consecutive time at its April meeting on Thursday, by 25 basis points to 2.25%. According to ING chief economist Peter Vanden Houte, the ECB is probably going to lower short rates by another 25 basis points. The ECB may lower all three major interest rates during its meeting on Thursday, according to Hadrien Camatte, senior economist at Natixis, who also mentioned that a further 25 basis point decrease might occur in June.
The Bank of England (BoE) will lower interest rates to 4.25% next month after data provided by National Statistics on Wednesday revealed that UK inflation decreased more than anticipated in March. After rising 2.8% YoY in February, the UK CPI increased 2.6% YoY in March. It fell short of the 2.7% market consensus and was the lowest inflation since December 2024.
According to the LSEG statistics, financial markets are currently placing bets on an interest rate drop by the BoE at its May meeting, with an estimated 86% possibility. Although US tariffs have clouded the economic picture, Rob Wood, chief UK economist at Pantheon Macroeconomics, sees potential for interest rate decreases in May, June, and November.
Amid worries about a recession brought on by tariffs, the ECB is anticipated to lower interest rates on Thursday.
In March, UK inflation decreased to 2.6% YoY, strengthening the argument for a rate cut by the BoE.
Some sellers are drawn to the EUR/GBP cross at about 0.8590 on Thursday during early European trading hours. As the European Central Bank (ECB) is expected to announce a 25 basis point (bps) rate drop later in the day, the Euro (EUR) depreciates vs the GBP.
As inflation slows and tariff threats increase, the European Central Bank is anticipated to lower its benchmark interest rate for the sixth consecutive time at its April meeting on Thursday, by 25 basis points to 2.25%. According to ING chief economist Peter Vanden Houte, the ECB is probably going to lower short rates by another 25 basis points. The ECB may lower all three major interest rates during its meeting on Thursday, according to Hadrien Camatte, senior economist at Natixis, who also mentioned that a further 25 basis point decrease might occur in June.
The Bank of England (BoE) will lower interest rates to 4.25% next month after data provided by National Statistics on Wednesday revealed that UK inflation decreased more than anticipated in March. After rising 2.8% YoY in February, the UK CPI increased 2.6% YoY in March. It fell short of the 2.7% market consensus and was the lowest inflation since December 2024.
According to the LSEG statistics, financial markets are currently placing bets on an interest rate drop by the BoE at its May meeting, with an estimated 86% possibility. Although US tariffs have clouded the economic picture, Rob Wood, chief UK economist at Pantheon Macroeconomics, sees potential for interest rate decreases in May, June, and November.
