Rabobank strategist Jane Foley warns sterling could weaken if the Bank of
England signals caution on further hikes and a Thursday by-election raises
political risk. Wednesday’s softer-than-expected UK inflation print has
heightened debate over whether the BoE will extend a wait-and-see stance. A win
for Andy Burnham could prompt a challenge to Keir Starmer; Burnham’s leftward
stance and the prospect of replacing fiscally conservative Reeves may unsettle
the gilt market and disrupt sterling.
