Pound Holds Steady as BoE Focuses on Inflation. Forecast as of 02.07.2026

The Bank of England has succeeded in bringing down inflation while also reducing expectations of further increases in the repo rate, weakening the pound. However, policymakers are now highlighting the risks of a renewed surge in consumer prices, providing fresh support for GBP/USD quotes. Let's examine the factors driving the pair and develop a trading plan.Major Takeaways The Bank of England has brought inflation under control. Markets are underestimating the likelihood of a repo rate hike