Lombard Odier: Pound Could Fall Further Against the Euro If the Bank of England Holds Rates

According to Jin10, Lombard Odier analyst Francesco Pesole said the pound's decline against the euro could continue, as the Bank of England is likely not to raise rates this year. He said the Bank of England is very likely to keep rates unchanged on Thursday, while market attention is on whether the Monetary Policy Committee's camp supporting tighter policy has expanded. Pesole added that if inflation expectations remain contained, Lombard Odier believes the Bank of England will keep rates unchanged for the rest of the year. He said the most obvious short-term risk for the pound is that markets have already priced in a rate hike this year, including expectations for a 37-basis-point increase by year-end.