Commerzbank analyst Michael Pfister said uncertainty over whether the Bank of
England will hike further should limit sterling’s near-term upside. The BoE on
Thursday delivered a 25bps hike; one member preferred a 50bps move. Pfister said
Governor Bailey signaled the possibility of further tightening but gave no
timing, and he expects another hike in February next year — though he added that
if Middle East tensions ease and energy exports normalize by then the case for
more tightening would weaken.
