ING: If the UK budget increases interest rate cut expectations, the pound may fall

Golden Ten Data on March 17, ING analyst Turner believes that if the UK budget on March 26 prompts the market to digest the expectation of further interest rate cuts by the Bank of England, the pound is likely to fall. He said that UK Chancellor of the Exchequer Reeves is expected to announce spending cuts, and that tight fiscal policy could be negative for the pound. He said the pound could weaken against the euro or the safe-haven yen, against the backdrop of concerns about US tariffs, as the dollar is also vulnerable. The Bank of England is expected to leave interest rates unchanged on Thursday. The market expects the Bank of England to cut interest rates by a further 55 basis points this year. ING expects a 75 basis point rate cut.