BoE's Greene Adds Hawkish Tilt, Lifting July Hike Odds as GBP/USD Holds Near 1.2720

MPC member Megan Greene warned on June 2 that the risk of acting on rates is less severe than failing to act, pushing markets to price a 50% chance of a July hike. The comments follow Governor Bailey’s May 29 statement that removing rate-cut expectations had already tightened policy and shifted pricing to one 25 bp hike by year-end. Despite BNP Paribas caution on sticky 6.0% services inflation, BofA-highlighted inflows have kept GBP/USD resilient around 1.2720 and trimmed August cut odds to 40%.