The Bank of England lowered interest rates, following the ECB. The Fed will take a different path this year. That will put upward pressure on the dollar.

The Bank of England could cut interest rates only twice more, including once at this week’s meeting, pausing rate reductions by the second half of the year, Berenberg’s Andrew Wishart says in a note.

In its first meeting of 2025, the bank’s Monetary Policy Committee voted seven to two in favour of the drop from 4.75 per cent.