Sterling braced for further fall on UK rate decision

Sterling yesterday headed for its third monthly decline as investors anticipated the Bank of England will cut interest rates and add stimulus to stem a potential fallout from Brexit.

Sterling has weakened against all of its 16 major peers in the past three months and remains under pressure as economic consequences begin to surface of Britain’s vote in June to exit the EU.

Swaps pricing show a 100% chance the Bank of England will reduce its main interest rate from a record-low 0.5%, where it’s been since March 2009.