• The Pound Sterling weakens as investors expect the BoE to cut interest rates on Thursday.
• A few BoE policymakers may hesitate to vote for a dovish decision due to high inflation in the UK service sector.
• The Fed is widely anticipated to maintain the status quo.

The Pound Sterling (GBP) underperforms against its major peers in Monday’s London session. The British currency weakens ahead of the Bank of England (BoE) monetary policy meeting, which is scheduled for Thursday. The BoE is expected to cut its interest rates by 25 basis points (bps) to 5%. This will be the first rate-cut decision in the BoE in more than four years since pandemic-led stimulus forced global central banks to pivot to a restrictive policy framework in an attempt to normalize inflated world markets.