Strategists at Societe Generale believe that raising UK interest rates by 50bp right now is viewed as counterproductive because it adds downside risks to already weak economic growth.

Key quotes

"There are not many winners in FX against the dollar because everyone is in the same boat fighting the same inflation war.”

"The debate will move on when there is greater certainty that price pressures are receding around the world.”

“The pound could strengthen once the Fed takes its foot off the monetary brakes, but that moment is still some time away. In the meantime, we must hope that the UK economy does not worsen."