The Bank of England (BoE) is set to hike 50 bps which will take Bank Rate up to 2.25%. Nonetheless, economists at ING expect the GBP/USD pair to extend its downfall towards 1.10.

BoE to hike 50 bps, sterling at risk

“The hawkish BoE has provided little support to sterling this summer. Instead, fiscal concern is growing in the UK and tomorrow's 'fiscal event' could prove the trigger for another round of Gilt and sterling selling.”

“GBP/USD to continue grinding towards 1.10. And a difficult equity environment could see EUR/GBP edging back to the 0.88 area.”

See – BoE Preview: Forecasts from 10 major banks, a close call between 50 bps and 75 bps