Good First Innings for Sterling
by AIB Treasury Economic Research Unit
- From a currency viewpoint, one of the biggest surprises over the first half of 2023 has been the strength of sterling.
- One reason for sterling’s strong performance year-to-date has been the macro backdrop where the UK economy has proved to be more resilient than had been expected.
- At the same time, over the last number of months, sterling has benefitted from widening interest rate differentials, with the BoE continuing to hike interest rates.
- However, the reaction of sterling to the most recent Bank of England meeting and policy announcement in June is noteworthy.
|
|
