GBP/USD: BoE's aggressive rate hike cycle not enough to lift the pund – MUFG - NewsBreak

The UK rate market moved to price in more front loaded rate hikes from the Bank of England (BoE) following the hawkish comments from Governor Bailey over the weekend which has seen cable rise back to within touching distance of the 1.3800-level. Nonetheless, economists at MUFG Bank still expect GBP/USD to move downward into year-end due to slow growth and high inflation.