After a surprise surge on Tuesday afternoon, the pound has weakened slightly against the euro and the dollar. Sterling could be impacted by the European Central Bank’s monetary policy meeting today, as the markets will also be looking ahead and comparing to the Bank of England’s meeting next week.
A 25-basis point interest rate hike is expected at the Bank of England’s meeting next week in order to tame high inflation.
The latest forecast from the British Chambers of Commerce shows that the UK economy is expected to show no growth in quarter two and three of this year and could contract in quarter four.
