Barclays Capital revised down its forecast for the British pound, citing disappointing economic data and a lack of will among the Bank of England’s monetary policy committee to raise interest rates.
“The revisions reflected a series of weak activity data, and despite ongoing high rates of inflation, no sign from any MPC member of an imminent change of vote,” Barclays’ analysts Paul Robinson and Sara Yates, wrote in a note Tuesday.
The British pound GBPUSD will decline to $1.58 in three months, down from $1.6113 currently and from a previous forecast for it to improve to $1.72, Barclays said.
