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Pound falters against dollar amid increasing BoE rate cut bets; GBP/INR futures approach 119 mark

(02-Dec-25   16:55)

British pound stumbles on Tuesday after United Kingdom (UK) Prime Minister (PM) Keir Starmer stresses bringing inflation and interest rates down to boost business investment and economic growth. Besides, Bank of England (BoE) is expected to cut interest rates in the monetary policy meeting this month amid weakness in the job market and slowing inflation growth. GBP/USD pair is quoting at $1.3201, slightly lower on the day. Bank of England (BoE) Governor Andrew Bailey stated during the European trading session that the focus on maintaining financial stability has become more important than ever, given increased risks. Meanwhile, Britain's central bank on Tuesday cut the amount of capital it estimates lenders need to hold in a bid to boost lending and stimulate the economy, in what will be its first reduction to bank capital demands since the global financial crisis. The Bank of England said its capital framework review showed that the benchmark for Tier 1 capital requirements for lenders, set at 14% since 2015, could be reduced by 1 percentage point to 13%. In its half-yearly Financial Stability Report, the central bank also said it would launch a review on enhancing the usability of buffers and on the implementation of the leverage ratio, initiatives that could further ease requirements for lenders. On the NSE, GBP/INR futures are trading at 118.90, up 0.2% on the day.

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