GBP/EUR: Euro Rallies vs Pound On Policy Tightening Optimism

The pound euro exchange rate (GBP/EUR) is rising towards €1.17.

The euro is falling after the ECB left interest rates on hold at 4% in a split vote, with some policymakers voting for an immediate cut.

The central bank signaled to a June rate cut as inflation trends towards the 2% target.

The pound is rising after a survey from the British Commercial Consortium showed that of of British firms still plan to raise prices, highlighting why the BoE is cautious about cutting rates too soon.

BoE’s Megan Greene warns that persistent inflation could be more of a concern in the UK than the US,