- Analytics
- News and Tools
- Market News
- Additional GBP downside into year-end – CIBC
Additional GBP downside into year-end – CIBC
The BoE left rates at 5.25% for a second straight meeting in October. Economists at CIBC Capital Markets analyze BoE’s policy outlook and expect the Pound to remain under pressure.
BoE to maintain policy at the current rate through August 2024
Irrespective of BoE macro forecast amendments, including higher CPI, and downgraded GDP, (the bank anticipates zero growth between Q2 2024 and Q1 2025), we continue to expect the BoE to maintain policy at the current rate, 5.25%, through to August 2024.
Elevated and sticky UK CPI points towards the BoE being a policy laggard in terms of monetary easing, underlining macro underperformance well into 2024.
The corollary of weak macro data and moderating rate expectations (we anticipate that Q1 terminal rate expectations should be pared, from the current 7 bps), is the prospect of additional GBP downside into year-end.
GBP/USD – Q4 2023: 1.18 | Q1 2024: 1.18
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
