The rate cut is expected to be 25 basis points 4.25%, which is usually considered a weakness for GBP. If the BoE takes a dovish stance, it will cause the GBP to fall further. FACTORS SUPPORTING A RATE CUT 👉UK inflation fell to 2.6% in March 2025 from 2.8% in February, although still above the BoE's 2% target. The decline has increased pressure for monetary easing. 👉Supported by IMF forecasts and market sentiment that sees room for monetary easing due to subdued inflation. 👉Statements from MPC members such as Megan Greene suggest that US tariffs could depress UK inflation, strengthening the case for a rate cut. If rates are cut by 25 basis points, GBPUSD will fall to the support level at 1.3205. If rates remain unchanged, GBPUSD will break through resistance at 1.3445 Stay alert as price could break through resistance if the cut is delayed. #DYOR

The BoE also noted that inflation is expected to rise to around 2.75% in 2025 before returning to its 2% target, indicating a cautious stance in monetary policy. The IMF's World Economic Outlook report predicts that the BoE is likely to cut interest rates by three-quarters of a point (75 basis points) throughout 2025, in addition to a quarter-point cut in February 2025. This suggests the possibility of further cuts. Global pressures, such as US trade policy and potential energy price disruptions, could influence the BoE's decision. A member of the Monetary Policy Committee, Megan Greene, said that US trade tariffs may be more of a deflationary risk than an inflationary one, which could prompt a rate cut if economic growth weakens. #reuters There is a possibility that the BoE will consider cutting interest rates in May 2025, supported by IMF forecasts and market sentiment that sees room for monetary easing due to subdued inflation. Traders' sentiment is confident that the BoE will cut interest rates by 25 basis points (bps) to 4.25%. #FXS