The Bank of England (BoE) is unlikely to do many favours to Sterling, in the view of economists at Commerzbank.

BoE will always seem to be lagging behind developments

“As long as the BoE sticks to its rather cautious communication, contrary to the Fed and the ECB, Sterling is likely to principally remain under depreciation pressure.”

“As far as its communication is concerned the BoE will always seem to be lagging behind developments rather than fighting high levels of inflation actively, thus creating concerns that it might drop behind the curve with its monetary policy. That means monetary policy continues to put pressure on Sterling.”