Monex Europe Analysts Predict Potential Decline in British Pound Amid Political Risks

Monex Europe analysts have indicated in a report that the British pound may experience a decline in the coming months if the Bank of England refrains from raising interest rates and political risks in the country increase. According to Jin10, they noted that recent weak data from the UK has not supported market expectations for a rate hike this year. "We still believe that a rate hike is unlikely before 2027, while the possibility of a rate cut before the end of the year remains," the report stated. Meanwhile, Andy Burnham's potential victory in the special election on June 18 could challenge UK Prime Minister Keir Starmer's leadership. Monex forecasts that by this autumn, the pound will fall from its current levels of 1.3455 against the dollar and 1.1559 against the euro to 1.32 and 1.11, respectively.