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ForexMedium•6 March 2026•

1 min read

Markets Scale Back BoE Rate Cut Bets for March Amid Inflation Risks

A golden dollar sign glows green at the center of a world map, with green lines connecting continents. Currency codes EUR, EPY, JPY, EDF, and GBP are visible at the bottom. An upward arrow is in the t

Key Facts

1Markets have significantly slashed pricing for a Bank of England rate cut in March.

Financial markets have significantly reduced their expectations for an interest rate cut by the Bank of England (BoE) in March. According to analysts at ING, the primary driver for this reassessment is the rising risk of inflation linked to ongoing tensions in the Middle East. This shift suggests that interest rates may remain higher for longer than previously anticipated, providing a bullish outlook for the Pound Sterling. Meanwhile, pressure on the US Dollar has eased following reports of intelligence communications between the CIA and Iranian officials aimed at de-escalating regional conflicts. Investors are now closely monitoring geopolitical developments and their potential impact on global supply chains and price stability. Consequently, currency pairs like GBP/USD are seeing renewed support as the BoE's policy path appears more hawkish than earlier forecasts.