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Podcast: Beyond Currency
Episode: 17 February 2023 - End of hiking cycle to hit Sterling long-term
Description: At some point in the not-too-distant future, the Bank of England will bring to a close its programme of interest rates increases. At that time, the financial market will need to decide on the underlying strength of the economy, and whether that is sufficient to allow it to support the currency.
There is a growing concern that there are very few reasons to buy sterling outside the continued tightening of monetary policy. When that crutch is withdrawn, the pound could see a significant tumble.
Although the Federal Reserve is also possibly close to ending its own tightening, the ECB is...