Lloyds Warns: UK Rate Hikes Less Effective for GBP Support; BoE Faces Stalemate Ahead of November Decision

English summary

Lloyds Bank notes that following the Fed's rate hikes incurs higher costs for the UK without effectively supporting the pound, with policy efficacy significantly reduced compared to pre-2022. Persistent energy inflation limits central bank maneuvering space, making GBP trends crucial for monetary policy flexibility. Markets remain cautious ahead of the November 5 rate decision.