The pound steadied around multi-year highs against the dollar and euro on Monday, buoyed by the Bank of England’s relative hawkish stance compared to other central banks. Traders expect the BoE to be more cautious in cutting rates than the Federal Reserve and European Central Bank.

The BoE kept rates unchanged in September, following a cut in August, with markets only fully pricing in one additional 25 basis-point rate cut by year-end. Meanwhile, the ECB has already cut rates twice this cycle, with expectations of two more cuts by December, and the Fed is projected to deliver another 70 basis points of easing across its two remaining meetings after a recent 50 basis-point move.

“The pound’s recent strength has partly relied on the ‘no news is good news’ narrative,” said Francesco Pesole, currency strategist at ING, noting that the quiet economic calendar has allowed markets to focus elsewhere for easing bets while keeping the BoE in the relatively hawkish camp.