Pound Euro Flat after Bank of England

Modified: Thursday, 19 March 2026 21:31 BST - Written by James Fuller

STORY LINK Pound Euro Flat after Bank of England

The Pound to Euro (GBP/EUR) exchange rate remained rangebound on Thursday as both the Bank of England and the European Central Bank concluded their latest policy meetings.

At the time of writing, GBP/EUR was trading around €1.1581, broadly unchanged from the start of the session.

The Pound edged higher after the Bank of England opted to keep interest rates unchanged at 3.75% at its March meeting.

The outcome was largely anticipated, given the heightened inflation risks facing the UK following the recent surge in global energy prices linked to the conflict in Iran.

In its accompanying statement, the Bank of England warned that the situation represents a fresh economic shock and reiterated that it remains prepared to respond if inflation drifts too far from its 2% target.

These remarks, alongside another jump in energy prices during the session, led some investors to increase their expectations for further policy tightening this year, with speculation growing that more than one rate hike could be delivered.

The Euro also found support after the European Central Bank delivered its own policy decision.

Like the Bank of England, the ECB left interest rates unchanged, while highlighting the uncertainty and inflationary risks facing the Eurozone economy.

The central bank also revised its inflation projections higher, now expecting price growth to average around 2.6% over the year, and emphasised that future decisions will continue to be made on a meeting by meeting basis.

GBP/EUR Forecast: German Inflation Data in Focus

The Pound to Euro exchange rate may continue to see choppy movement as markets digest the implications of the latest central bank decisions.

Attention will also turn to Germany’s upcoming producer price index release, which could reinforce inflation concerns if it shows that input costs were already rising prior to the recent spike in energy prices.

Meanwhile, Sterling could face pressure if the Confederation of British Industry’s latest industrial orders survey indicates that demand weakened again this month.

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TAGS: Pound Euro Forecasts