Anna 
The Pound Sterling (GBP) has retraced to its previous range following a mild correction during Friday’s European session. The downside for the Pound appears cushioned as Bank of England (BoE) policymaker Catherine Mann delivers hawkish guidance on interest rates.
Catherine Mann’s hawkish stance persists as she emphasizes the risks of inflation shocks leaning to the upside due to the escalating Red Sea crisis. The Pound Sterling tends to attract higher foreign inflows when the BoE maintains a more restrictive stance on interest rates for an extended period.
While Mann supports further policy tightening, other BoE policymakers, including Chief Economist Huw Pill and Deputy Governor Sarah Breeden, discuss the duration of keeping interest rates at the current level.
With a lack of precise guidance on interest rates from BoE policymakers, the market will closely monitor the United Kingdom’s upcoming labor market and inflation data scheduled for next week. Any signs of softening price pressures and easing labor market conditions could fuel expectations of early rate cuts by the BoE, potentially weighing on the Pound.
