BoE's Greene Confirms Slow Rate Cut Cycle

Greene, speaking at the Atlantic Council, discussed inflation dynamics, global interest rates, and currency market risks, asserting that labor market slack reduces the likelihood of a wage-price spiral. UK unemployment increased from 4.2% at the start of the year to 4.5%, while average weekly earnings growth decreased from 5.7% in late 2024 to 4.9%, according to the Office for National Statistics.

This data supports the Bank of England's cautious approach to monetary easing. The British Pound strengthened against the Euro but showed mixed performance against the US Dollar and Japanese Yen.

The BoE's patient dovishness appears more hawkish than the European Central Bank's stance, explaining GBP's strength against the EUR. However, the Federal Reserve's similar slow-cutting policy suggests the GBP/USD pair will remain in a tight range.

Historically, the BoE has paused during easing cycles to assess data, making upcoming inflation and employment figures critical market-moving events.