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.

To view the full report please click here