File image of Governor Bailey. Image copyright: Bank of England.

The Bank of England decision could trigger falls in the British pound.

This is according to Wall Street giant Goldman Sachs, which warns an interest rate cut being delivered on Thursday is not adequately anticipated by the market.

"We think an easing decision would imply significant further downside for Sterling on the week," says Goldman Sachs in a regular weekly FX publication.

The call comes after two weeks of selling pressure on the pound after traders saw increased odds of a rate cut happening before the end of 2025 and as budget uncertainty lingered.

Why the pound has fallen:

Goldman Sachs says sterling weakness is linked to a decline in longer-dated Uk bond yields, which analyst say is consistent with a further r

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