According to Jinshi Data on September 19, the pound rose to its highest level against the US dollar in more than two years after the Bank of England kept interest rates unchanged and said it would not rush to relax policy.

Jordan Rochester, head of macro strategy at Mizuho International, said that the Bank of England will implement a gradual quarterly interest rate cut at most in the future, and the pound will continue to trade well against the US dollar, and is expected to break through 1.34 by early October and break through 1.40 by the end of 2025.

Thursday’s rebound extended sterling’s huge gains this year, making it the best-performing G10 currency so far in 2024. While investors expect the Bank of England to ease policy again in November, they are betting that price pressures in the UK will be more persistent and sterling borrowing rates will remain relatively high.