UBS: The BOE is expected to raise interest rates by 50 basis points, and now is not the time to sell the pound

UBS FX strategists said in a note that now is not the time to sell the pound.

UBS expects the Bank of England to raise interest rates by 50 basis points at its meeting on Thursday, beating expectations for a 35 basis point hike, according to Refinitiv data, which should boost sterling in the short term.

“The divergence in expectations between the policy rates of the BoE and other major central banks, notably the Fed, should continue to support sterling,” the strategists said.