The Governor of the BoE Andrew Bailey repeated in a speech on Monday that it was too early to consider rate cuts, as some components of inflation remained far too high and as wage growth continues to rise sharply. That means his comments are in sharp contrast with comments by BoE member Huw Pill who considered rate cuts, like those expected by the financial markets as of mid-2024, to be quite possible.

As long as Bailey does not represent the majority of BoE members with his warning words they are likely to provide little support for Sterling.