Commerzbank: Uncertain BoE Rate Outlook Limits Sterling's Upside

According to Jin10, Commerzbank analyst Michael Pfister said uncertainty over whether the Bank of England will raise rates further could limit sterling's gains in the short term. The BoE raised rates by 25 basis points on Thursday, while one policymaker favored a 50-basis-point increase. Pfister said Governor Andrew Bailey signaled that further rate hikes were possible but gave no specific timetable. He expects the BoE may raise rates again in February next year. Pfister added that if the situation in the Middle East has stabilized and energy exports have returned to normal by then, the case for another increase would be less compelling.