British Pound: Hawkish BoE but Pound upside capped – Commerzbank

FXStreet · FXStreet Insights Team · 2026-11-06 13:20 UTC

Michael Pfister at Commerzbank highlights that the Bank of England (BoE) delivered a hawkish rate hike, with unanimous support for tightening and one member backing a larger move. Governor Andrew Bailey signalled more hikes are likely, but gave no timetable.

Michael Pfister at Commerzbank highlights that the Bank of England (BoE) delivered a hawkish rate hike, with unanimous support for tightening and one member backing a larger move. Governor Andrew Bailey signalled more hikes are likely, but gave no timetable. Commerzbank still expects the next increase in February, not December, and sees the British Pound (GBP) struggling to trade higher in the meantime.

BoE unity fails to lift Pound

"As expected, the Bank of England raised interest rates yesterday. But in contrast to the Czech National Bank, the vote turned out to be surprisingly hawkish. While two votes in favour of keeping rates unchanged had been anticipated, ultimately all policymakers voted in favour of a rate increase, with Catherine Mann even voting for a 50-basis-point increase. Mann is known for her volatile voting behaviour, meaning she may vote to keep rates unchanged next time, but policymakers generally appear more united on the risks posed by inflation than previously thought."

Read the full story at FXStreet · All coverage of this story