Investing.com — The British pound found support after the Bank of England released a statement that was less dovish than anticipated, according to analysis from ING on Friday.
Several BoE decision-makers highlighted concerns about persistently high wage growth expectations and structural inflation pressures, providing some strength to the currency.
ING analysts predict these wage expectations will likely decline in early 2026 as headline inflation continues to fall.
The bank maintains its forecast for 25 basis point interest rate cuts in both February and April, which differs from current market expectations of just a single cut during that period.
Based on this outlook, ING suggests the EUR/GBP exchange rate will continue finding support above the 0.87 level.
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