The British pound rose in European trading on Thursday against a basket of global currencies, extending its recovery for a second consecutive session from a seven-month low versus the U.S. dollar, ahead of the Bank of Englands policy decision at the conclusion of its seventh regular meeting of 2025.

Markets widely expect the central bank to keep interest rates unchanged for the second consecutive meeting, while investors look for further clues about the pace and timing of future monetary easing in the United Kingdom.

Price Overview

GBP/USD: The pound rose 0.15% to 1.3066, up from an opening level of 1.3049, after touching an intraday low of 1.3046.

On Wednesday, the pound gained 0.25% against the dollar, rebounding from a seven-month low of 1.3010.

Earlier this week, the currency came under broad pressure after Finance Minister Rachel Reeves outlined the challenging economic conditions facing Britain, citing rising debt levels, weak productivity, and persistently high inflation.

Bank of England

The Bank of England is widely expected to announce on Thursday that it will leave interest rates unchanged at 4.00% their lowest level since February 2023 marking a second straight meeting without a change.

The rate decision, policy statement, and voting breakdown will be released at 12:00 GMT, followed by a press conference from Governor Andrew Bailey at 12:30 GMT to discuss the outcome, the state of the inflation battle, and the outlook for interest rates.

Pound Outlook

According to expectations here at Economies.com, if the Bank of Englands statement and Andrew Baileys remarks strike a more hawkish tone than markets currently anticipate, the odds of a rate cut in December would likely diminish, paving the way for further recovery in the pounds value.