GBP/SEK confined in tight range with focus on BoE

The GBP/SEK currency pair was stuck within a narrow daily range on Thursday, as investors braced for the outcome of the Bank of England’s policy meeting.

The Bank of England is expected to lower its benchmark interest rate by 25 basis points to 4% at its August 7th meeting – the lowest rate since March 2023.

In June, the BoE left borrowing costs on hold, as it cited a challenging backdrop of heightened global uncertainty and persistent inflationary pressures.

Three MPC members had voted in favor of a 25 bps rate cut to 4%.

The central bank had said that consumer inflation was likely to remain broadly at current levels for the rest of 2025 before easing toward the target in 2026.

The BoE’s new forecasts are likely to reflect higher short-term inflation due to rising energy and food costs and a weaker labor market after April’s tax hikes.

Meanwhile, Sweden’s annual consumer inflation has picked up to 0.8% in July from 0.7% in June, the latest data by Statistics Sweden showed.

Still, the latest reading has remained well below the Riksbank’s 2% target.

And, Sweden’s consumer price index with a fixed interest rate (CPIF), Riksbank’s target variable for inflation, went up 2.8% year-on-year in July.

The GBP/SEK currency pair was last little changed on the day to trade at 12.8318.