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Stock Markets March 23, 2026

BoE policymakers to speak this week as markets track sterling and data flows

Officials' remarks, February inflation and PMI prints likely to influence sterling and UK equity sentiment amid Middle East tensions

By Sofia Navarro
BoE policymakers to speak this week as markets track sterling and data flows

Several Bank of England officials will give public remarks this week, led by Chief Economist Huw Pill on Tuesday, with Megan Greene, Sarah Breeden and Alan Taylor also scheduled to speak. UK inflation data for February is due on Wednesday and PMI releases on Tuesday are likely to draw market attention. Currency markets show EUR/GBP trading about 0.5% above ING's short-term fair value, while sterling has weakened against the dollar. Geopolitical strain in the Middle East has pressured the pound and UK equities, with the FTSE 100 sliding 2.3% to 9,685.78.

Key Points

  • Multiple Bank of England officials, including Chief Economist Huw Pill, will speak this week, making their comments a focus for rate expectations - impacting currency and fixed income markets.
  • UK CPI for February releases on Wednesday; ING expects the data may have limited market impact due to developments already observed in March - relevant to inflation-sensitive sectors and policy outlook.
  • FX markets show EUR/GBP trading about 0.5% above ING's short-term fair value while sterling has weakened versus the dollar; geopolitical tensions have also pressured UK equities, with the FTSE 100 down 2.3%.

Bank of England officials are set to provide a stream of public comments this week that market participants will watch closely for any signals on the policy outlook. Chief Economist Huw Pill is scheduled to speak on Tuesday, and further contributions from Megan Greene, Sarah Breeden and Alan Taylor are expected later in the week. Given the cadence of remarks, rate expectations are likely to react to the officials' language.

On the macro calendar, UK consumer price inflation for February is due on Wednesday. ING has suggested that these figures may have only limited market impact because of developments already seen in March. Instead, Tuesday's purchasing managers' index releases are anticipated to capture more immediate attention from traders and analysts.

Foreign-exchange markets show the euro-to-pound rate trading roughly 0.5% above what ING estimates as its short-term fair value. ING also notes that current fragile risk sentiment has been acting as a headwind to any large downward adjustments in the pair.

Market levels reported early Monday reflect some pressure on the pound. At 10:23 AM GMT on Monday, GBP/USD was at 1.3263, down 0.6%, while EUR/GBP was quoted at 0.8664, down 0.10%.

Escalating tensions in the Middle East have been cited as weighing on both the pound and UK equity markets, as well as on global risk assets more broadly. The FTSE 100 declined 2.3% to 9,685.78 amid those developments.

Events over the weekend added to market nervousness: U.S. President Donald Trump issued an ultimatum calling on Iran to reopen the Strait of Hormuz, while Tehran responded with an offer of only a selective reopening to neutral vessels. These geopolitical dynamics have coincided with the moves in FX and equity markets described above.

Market context

  • Speeches from Huw Pill, Megan Greene, Sarah Breeden and Alan Taylor are scheduled this week and are likely to influence rate expectations.
  • February UK inflation data is due Wednesday, though ING expects limited influence given subsequent developments in March.
  • Tuesdays' PMI releases are expected to draw notable market attention.

Risks

  • Geopolitical escalation in the Middle East presents downside risk to UK equities and the pound, as evidenced by recent market moves and the FTSE 100 decline - affects global risk assets and UK-listed companies.
  • Unexpected commentary from BoE officials could shift market rate expectations and influence currency and bond markets - relevant for interest-rate-sensitive sectors.
  • If February inflation prints surprise on the upside or downside, it could alter near-term market positioning despite ING's view of limited impact - implications for inflation-exposed sectors and monetary policy outlook.

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