The British pound weakened further to below $1.22, moving closer to a 2-year low touched under $1.2 on June 14th after the latest CPI report showed inflation rose to a fresh 40-year high, adding pressure for an even more aggressive stance from the Bank of England in spite of recession risk. Consumer prices in the UK surged 9.1% from a year earlier in May, the highest since 1982, as skyrocketing food and energy prices continue to deepen the country’s cost of living crisis. The BoE has raised rates five times since December when it became the first major central bank to increase rates after the COVID-19 pandemic, and rates now stand at 1.25%. Meanwhile, recession concerns remain prevalent, as the British economy contracted 0.3% in April and 0.1% in March.
Historically, the British Pound reached an all time high of 2.86 in December of 1957. British Pound - data, forecasts, historical chart - was last updated on June of 2022.
The British Pound is expected to trade at 1.21 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.16 in 12 months time.