The GBP/USD pair is on a consistent upward trajectory.
The British pound sterling has reached its highest point in four months against the US dollar. The current GBP/USD exchange rate is at 1.2767.
During its December meeting, the Bank of England opted to maintain its monetary policy without any adjustments, holding the interest rate steady at 5.25% per annum.
Observations from the market indicate that the British regulator appears more cautious in discussing prospects or assessments compared to the ECB or Fed. This caution might suggest that the BoE is contemplating a reduction in interest rates.
Market predictions anticipate that in 2024, the Bank of England could decrease the interest rate four times, with the first adjustment likely in May.
However, it's noteworthy that three out of nine Committee members voted to raise the rate, consistent with the November decision. The central bank has not provided explicit commentary on its future monetary policy steps. The only certainty conveyed by the regulator is that rates might remain restrictive for an extended period.
The diminished appeal of the US dollar is contributing more to the pound's strength than the specific decisions of the Bank of England.