Pound Sterling strengthens past 1.3250 as markets anticipate upcoming Fed and BoE interest rate announcements

101 finance2026/03/16 05:09

By:101 finance

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GBP/USD Strengthens Amid Weaker US Dollar

GBP/USD is showing renewed strength near 1.3255 in early European trading on Monday, supported by a declining US Dollar. The currency pair is hovering close to its lowest level since December 2025. Investors are likely to adopt a wait-and-see approach ahead of key interest rate announcements from the US Federal Reserve and the Bank of England (BoE) scheduled for later this week.

Market Outlook on Central Bank Decisions

The Federal Reserve is expected to maintain its current benchmark rate between 3.50% and 3.75% at its March meeting on Wednesday. Ongoing concerns about inflation have led many experts to postpone their forecasts for a rate reduction until September.

“The ongoing conflict presents downside risks to economic growth and could push inflation higher, so central banks will tailor their responses based on recent inflation trends—whether inflation has exceeded, met, or fallen short of targets,” explained Carol Kong, currency strategist at Commonwealth Bank of Australia.

Bank of England Policy and UK Economic Risks

The Bank of England is also expected to leave interest rates unchanged at 3.75% during its Thursday meeting. According to Oxford economists, a scenario where oil prices surge to $140 per barrel could significantly increase inflation and potentially push the UK into a mild recession.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Dow Jones•2026/10/08 15:00