Sterling Monthly Outlook
22nd December 2014 By: Ranko Berich
Macro Economy: The UK’s economy is growing strongly, and the two former problem areas of Real Wages and Productivity are finally showing signs of improvement.
Monetary Policy: The Bank of England is in “wait and see mode” and will not raise rates until it gets a clearer look at how wage growth and falling commodity prices will affect inflation.
Currency Outlook: Although a period of sideways trading in the near future is possible, in the medium term government bond yield trends suggest that more sterling weakness is ahead.
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