GBP/SEK off 1-week low with focus on cenbank meetings

The GBP/SEK currency pair gained on Wednesday, while rebounding from a one-week low, as investors awaited the outcome of the Bank of England’s and Riksbank’s policy meetings this week.

The Bank of England is expected to maintain its benchmark interest rate at 4.5% at its March 20th policy meeting.

In February, the BoE delivered its third rate cut since the beginning of its monetary easing cycle in August 2024, bringing borrowing costs to their lowest level since May 2023.

All 9 members of the Monetary Policy Committee voted in favor of a rate cut, while 2 members favored an out-sized 50 basis point reduction.

All MPC members have agreed that policy easing would likely be gradual this year amid rising concerns over economic growth and elevated underlying services inflation.

The BoE policy decision will be preceded by UK’s employment and wage growth data for January.

Meanwhile, Sweden’s Riksbank is expected to leave its key policy rate without change at 2.25% at its March 20th meeting.

The central bank has delivered six rate cuts since May 2024, or a total of 175 basis points. Sweden’s inflation has remained close to the 2% objective, but economic weakness has persisted.

The GBP/SEK currency pair was last up 0.15% on the day to trade at 13.0769. Yesterday the exotic Forex pair went down as low as 13.0335, or its lowest level since March 12th.