MUFG Analysts: Bank of England Rate Cut May Have Limited Impact on Pound

According to a report by Mitsubishi UFJ Financial Group (MUFG) analyst Lee Hardman, the Bank of England's (BoE) rate cut expected this week may result in a limited depreciation of the pound. Historically, the pound has weakened after central bank meetings, but Hardman predicts that any decline this time may be moderate.Hardman further noted that consecutive rate cuts are more likely in November and December, which would have a more significant effect on the pound's performance later this year. He added that, given the BoE's slower pace of rate cuts compared to the U.S. Federal Reserve, any short-term pullback in the pound against the dollar this week could present a buying opportunity for investors.