In the Asian session on Wednesday (March 22), GBP/USD rose slightly, temporarily reporting 1.2220, an increase of 0.01%. At present, because the systemic risks in the European and American banking industries are difficult to eliminate in the short term, coupled with the optimistic expectations of the British Ministry of Finance for the new fiscal year, the market’s expectations for the Bank of England to continue to raise interest rates have dropped significantly.
Chief economic adviser Martin Baker said there was good reason to ease up on rate hikes ahead of a bank bailout. As early as January this year, surveys had pointed out that the tightening of monetary policy in the UK was nearing an end, and the Bank of England may start cutting interest rates around the end of 2023.
The health of the global banking system is fueling growing concerns that could force the Bank of England’s monetary policy committee to pause on rate hikes, according to the chief economist at economic research firm Capital Economics.
