More gradual Bank of England rate cuts = support for GBP

UBS analysts (at UBS Global Wealth Management) says GBP will be a beneficiary of the Bank of England only cutting rates gradually.

• cautious Bank of England will support sterling
• sees GBP/USD higher in the months ahead

UBS remarks after the Bank of England cut its Bank rate on Thursday but sounded less dowvish on future rate cuts due to sticky inflation effects of the UK budget:

• Forexlive Americas FX news wrap 7 Nov: FOMC/BOE cuts by 25 basis points

This article was written by Eamonn Sheridan at www.forexlive.com.