Sterling is still weaker this morning against both the euro and the dollar, although it has recovered a little against the euro. It is still suffering due to inflation and economic growth concerns, which have come about due to the energy crisis.
Despite these worries, GDP figures for the UK came in better-than-expected this morning. GDP growth for Q2 came in at 5.5%, higher than the original estimate for growth of 4.8%. GDP is now just 3.3% off of pre-pandemic levels.
In a speech yesterday, Governor Andrew Bailey said that an interest rate hike is possible before the end of the year. However, he said that the economy is not strong enough at the moment for an immediate hike.
