Pound Steadies as Sluggish GDP Growth May Keep BoE on Hold. Forecast as of 04.06.2026

The futures market expects the repo rate to rise from 3.75% to 4.25% in 2026. However, the weakness of the UK economy and labor market will most likely prevent the Bank of England from taking aggressive action. Let's discuss this topic and develop a trading plan for the GBP/USD pair.Major Takeaways Markets estimate the scale of the BoE's rate hike at 47 basis points. There will be a split within the MPC. The pound will continue to react to geopolitical developments. If GBP/USD quotes fail to set