The British pound held above $1.37 in October, hovering around its strongest level in a month, amid expectations the Bank of England will be raising interest rates later this year or early in 2022. Governor Andrew Bailey on Sunday said once again that policymakers would have to act, as a surge in energy prices would push inflation higher and make its climb last longer, raising the risk of higher inflation expectations. The central bank has forecast that Britain's inflation rate will go over 4%, more than double its target. Elsewhere, concerns over the British economy mounted due to an unprecedent energy crisis and the shortage of workers in the wake of Brexit and the COVID pandemic, while investors also worry about the unemployment outlook as a furlough scheme introduced to mitigate the effects of the pandemic ended in September.
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 October of 2021.
The British Pound is expected to trade at 1.37 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.34 in 12 months time.