Analyst report 💱 Forex 🌍 EUROPE

ING Forecasts GBP Gains as Bank of England Prepares 25bp Rate Hikes

Sterling gains momentum against the Euro as ING analysts project two 25bp Bank of England rate hikes, signaling a bearish mid-term outlook for the EUR/GBP exchange rate.

📅 October 22, 2026 🕐 1 min read

1 assets impacted (Forex). Net bias: 0 Bullish, 1 Bearish, 0 Neutral. Strongest signal: EUR/GBP ↓ 3/10 (60% confidence).

📊 Affected Assets (1)

EUR/GBP

Bearish 🤖 60%

📆 Mid-term 🌍 EUROPE · Explicit

ING expects Bank of England to hike rates, supporting GBP against EUR, leading to bearish EUR/GBP outlook.

🎯 Key Takeaways

ING expects the Bank of England to implement 25bp rate hikes in February and November.
Sterling strength is driven by both independent GBP gains and broader Euro weakness.
Market confidence in the BoE's tightening path has effectively neutralized previous concerns regarding fading Pound momentum.

📝 Executive Summary

ING strategist Chris Turner anticipates sterling strength as market confidence in the Bank of England's tightening cycle grows. The firm projects 25 basis point rate hikes in February and November, weighing on the EUR/GBP pair.

❓ FAQ

Why is the EUR/GBP outlook bearish?

The outlook is bearish because ING expects the Bank of England to pursue a tightening path with rate hikes, which strengthens the Pound relative to the Euro.

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