Institutions: Bets on the cautious rate cut by the Central Bank of the UK push up the pound

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FXStreet news on August 27th, the British pound has risen to its highest level in two and a half years against the US dollar, and the pound against the euro has risen to its highest level in nearly four weeks, as investors bet that the Central Bank of England will take a cautious approach to interest rate cuts. At the Jackson Hole symposium on Friday, Bank of England Governor Bailey said it was too early to declare victory in the fight against inflation, while Fed Chair Powell sent a more decisive signal of interest rate cuts. Mitsubishi UFJ analyst Derek Halpenny said in a report that by mid-2025, the UK’s real policy Intrerest Rate adjusted for inflation is expected to be the most attractive in the G10, which should continue to support the pound.

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