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- Sterling to ease over the coming months – Commerzbank
Sterling to ease over the coming months – Commerzbank
Economists at Commerzbank analyze GBP outlook ahead of the UK Consumer Price Index (CPI) and labour market data.
Speculation about a further rate hike might gather momentum on unfavourable data
If the labour market and inflation data turn out to be unfavourable, speculation about a further rate hike might gather momentum again on the market. This would support Sterling temporarily.
However, we remain sceptical regarding the BoE’s determination to fight high levels of inflation – as the September meeting once again demonstrated – and therefore expect Sterling to ease over the coming months.
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