Sterling Stumbles: Anticipated BoE Moves Add Pressure

Sterling faced its third consecutive weekly decline against the dollar and euro, influenced by the Bank of England's rate decision. A narrow vote signaled potential December rate cuts, while an anticipated fiscal tightening package in the government's Autumn Statement could provide BoE more easing room next year.

Sterling experienced its third straight weekly drop against the dollar and euro, as the Bank of England's rate decision and upcoming government budget announcement weighed on investor sentiment. A narrow vote by the BoE suggested a potential rate cut in December, increasing market volatility expectations.

The Bank of England held interest rates steady, defying expectations from a minority of analysts hoping for a rate cut. Anticipated fiscal tightening in the Autumn Statement is expected to give the BoE more room for easing next year, amid a backdrop of a strengthening dollar.

Traders bet on an imminent BoE rate cut following a tight vote, as sterling dipped 0.27% against the dollar and 0.50% over the week. The euro gained against sterling, with predictions of further pound weakness should inflation slow. With the budget looming, market speculations continue to rise.

(With inputs from agencies.)