BOE’s Hawkish Turn Reignites the Pound’s Pre-Pandemic Strength

BOE’s Hawkish Turn Reignites the Pound’s Pre-Pandemic Strength

(Bloomberg) -- The pound is about to enter a new era of strength against the euro, thanks to the Bank of England’s hawkish turn.

Traders have raised the odds of a rate hike in February to 60% after the BOE made clear last week that it’s beginning a countdown to end the era of rock-bottom borrowing costs. And it’s given sterling the momentum it needed to break past 85 pence per euro -- a barrier that had been intact since early April -- to hit the strongest level since February 2020.