(Reuters) -Sterling was headed for its third straight weekly loss against the dollar and the euro on Friday as investors digested the Bank of England’s rate decision and looked ahead to the government’s budget later this month.

A narrow vote and signs that BoE Governor Andrew Bailey may soon join those favouring a cut have raised the odds of a December easing move.

The BoE held rates, disappointing the most dovish expectations after a minority of analysts had bet on a 25-basis-point cut.

MORE ROOM TO EASE IN 2026

Markets now expect the British government to unveil a significant fiscal tightening package in its Autumn Statement, creating more room for the BoE to ease further next year.

The greenback was on track for a modest weekly gain as investors weighed the Fed’s hawkish tilt again

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