Wells Fargo economists estimate that sterling will suffer in the coming monthsbetween a bleak economic outlook in the UK and a more dovish Bank of England.
Sterling will underperform
“We anticipate a prolonged recession in the UK, bolstered by the government’s fiscal consolidation in its autumn statement. As a result, we expect the Bank of England rate to lag the Fed and market participant expectationswhile we also see the UK central bank easing monetary policy by the end of next year.”
“In this background, we expect the pound to underperform within the G10 currenciesshowing renewed weakness through early 2023 and only a modest rebound thereafter.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
