The British pound is moderately higher against the euro on Thursday as Sterling brushes off predictions of a UK rate cut later this month. The resilience of Sterling is despite broader euro-strength following the release of minutes from the last monetary policy meeting of the European Central Bank (ECB).

GBP/EUR was higher by 2 pips (-0.018%) to 1.1702 as of 1pm GMT, leaving the currency pair close to its highs for the week but in the middle of its 5-day price range.

The euro

Minutes released on Thursday offered details of the discussions held by policymakers at the last ECB meeting held in December 2019. The tone of the minutes was relatively hawkish on inflation, suggesting that ‘core’ inflation is rising. The bank has been emphasizing the ‘core’ inflation rate recently because it strips out more volatile swings in food and especially energy. Oil prices have swung wildly this year amid geopolitical tensions in the Middle East, which tends to create more ‘noise’ in the headline consumer price inflation figure.

The minutes noted that sentiment had improved since the thaw in relations between the US and China in their trade conflict but were more sanguine on the economic growth prospects of the Eurozone. Reference was made to the contraction in manufacturing saying, “the data is pointing to weak but stabilizing growth dynamics”.

Perhaps most positive of all for the euro was the description of the impact of central banks latest stimulus efforts as “conservative” and that the policy could be adjusted to reduce “unwanted side effects”. The implication here is that negative interest rates and the bond buy-buying program put in place under the watch of former ECB president Mario Draghi could be changed. The backdrop to these minutes at the ECB is that there was open rebellion by some policy makers about the decision to add to stimulus, which partly explains a “strategic review” currently being undertaken by new President Christine Lagarde.

The pound

The British pound continues to retrace recent losses despite recent data on the UK economy, including inflation missing market expectations. The losses began when Bank of England governor as well as other members of the Monetary Policy Committee started to openly discuss the prospect of an interest rate cut in the UK this year. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.