UK: 5-10% drop in GBP is possible – ANZ
Although GBP is cheap by historic measures, it will take time for the market to digest the policy response, in the opinion of analysts at ANZ Research.
“The near-term risks to GBP lie to the downside.”
“Owing to the dramatic change to the fiscal and monetary framework, which is open-ended, the risk premium around the UK economy and GBP will continue to rise.”
“A further 5–10% drop in GBP is possible if, as expected, the situation continues to deteriorate.”