Sterling has completely recovered from the mini-budget crisis. Nonetheless, economists at Commerzbank expect more pressure on the GBP.

Temporary breather for Sterling

“At present, the relief that the budget crisis has been brought under control is dominating and there is no evidence of the energy crisis escalating further. In our view that only provides a temporary breather for Sterling though.”

“The depressed economic outlook, the comparatively cautious monetary policy, which is likely to be confirmed by a return to a 50 bps rate step and the continued high levels of inflation continue to principally put pressure on Sterling.”