GBP/USD in focus as BoE expected to hike rates 25 bps to 4.00%

The Bank of England rate decision is the main event of today's European session and the key focus for GBP/USD. The source reports no price move, pip figure or technical levels. The BoE is widely expected to raise interest rates by 25 basis points to 4.00%, which would be the first hike in the current tightening cycle. According to the report, stronger-than-expected economic activity, improving labour-market conditions and persistent inflation pressures have weakened the case for leaving rates unchanged. With the hike largely anticipated, attention will centre on the Monetary Policy Committee vote split and on guidance about future policy decisions. A wider majority in favour of tightening, or guidance pointing to further hikes, would be read as hawkish for sterling. A divided vote or cautious forward guidance could temper that reaction. GBP traders should expect the vote breakdown and the policy statement, rather than the rate move itself, to drive the pound around the announcement.