Nov 8 Reuters Sterling was within striking distance of its highest level in more than 212 years against the euro on Friday as investors bet the European Central Bank would follow a faster monetary easing path than the Bank of England.

The BoE cut interest rates on Thursday for the second time since 2020 and said future reductions were likely to be gradual, as it predicted the British government39;s first budget would lead to higher inflation and economic growth.

Last week39;s budget, with its heavy borrowing and spending, prompted investors to dial back their bets on the pace of further rate cuts.

Investors expect the ECB to be more dovish than the BoE as the eurozone economy is likely to be hit harder than the UK39;s if incoming U.S. President Donald Trump implements higher tariffs when he takes office on Jan. 20.

However, analysts39; views about the BoE easing path and its impact on the British currency remained mixed.

We think there is a gap to be filled on the dovish side in the Sterling Overnight Index Average39;s Sonia curve, said Francesco Pesole, forex strategist at ING.

SONIA is the riskfree reference rate for the sterling market.

Such repricing may, however, take some time to show, and the rategrowth differential with the euro zone means there should be continued resistance on a substantial shift higher in the eurosterling cross, he added.

The pound was down 0.05 at 83.24 pence per euro .

In midOctober, it hit 82.97 pence, its highest level since…