4 Mar 2014
Flash: A not so bullish picture for GBP - FXStreet
FXStreet (Córdoba) - Ross Burland, analyst from FXStreet pointed out that the Pound could be headed toward a bearish scenario after 2015 elections in the UK if the Bank of England makes the inevitable task of raising rates.
Key Quotes
“ In the UK economy, everyone is back to the old ways. Economic data has perked up, people and businesses are more optimistic, house prices are rising and the pound is relatively strong again. But in fact, this is looking more like a boom and bust Britain all over again to me and interest rates rising could be the tipping point”.
“The UK is not likely to see the chancellor raising rates before the 2015 election because that would only scare off the voters, but there certainly is the scope for a hike after the election and as soon as 2015. This could be the one catastrophic event that could see the UK spiral into a financial collapse, affecting house prices, businesses, peoples personal wealth and a run on the banks”.
Key Quotes
“ In the UK economy, everyone is back to the old ways. Economic data has perked up, people and businesses are more optimistic, house prices are rising and the pound is relatively strong again. But in fact, this is looking more like a boom and bust Britain all over again to me and interest rates rising could be the tipping point”.
“The UK is not likely to see the chancellor raising rates before the 2015 election because that would only scare off the voters, but there certainly is the scope for a hike after the election and as soon as 2015. This could be the one catastrophic event that could see the UK spiral into a financial collapse, affecting house prices, businesses, peoples personal wealth and a run on the banks”.