Pound reverses initial declines after the governor Bailey said, that that the bank is not yet at the point to cut the base rate
Other comments:
- Inflationary shocks around the world are fading
- We are not yet at a point where we could decide to cut
- Wages are higher than expected, inflation in services remains excessively high. At the same time, these data should not prevail
- A rate cut in June is possible, but not planned at this point
- More data will make it possible to assess what's next for inflation
- We have 2 more inflation readings before the June decision
Like the statement, Bailey opens the door for a possible interest rate cut. On the other hand, it does not give a sure signal as to June. The market now gives 55% for a cut in June, which is a slight increase compared to the combined probability earlier for today's and June's decision. GBPUSD is back to where it was before the decision.

ملخص اليوم: ينتهي الأسبوع بانتعاش طفيف
ثلاثة أسواق يجب مراقبتها الأسبوع المقبل (24/08/2026)
عاجل: مؤشر مديري المشتريات للخدمات الأمريكية قوي 🔥 سعر صرف اليورو مقابل الدولار الأمريكي ثابت ↔️
عاجل: مؤشرات مديري المشتريات الأوروبية أقوى من المتوقع 🔼 زوج اليورو/الدولار الأمريكي يقترب من مستوى 1.17