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Economists at ANZ Bank expect the Pound Sterling (GBP) to strengthen in the coming year with Cable forecast to end at 1.34.
While the growth outlook is challenging, signs of resilience and the easing of inflationary pressures point to a robust GBP in 2024.
We don’t see the BoE easing rates until Q3 2024, giving the GBP the strong backdrop of higher real yields for longer and a recovering economic momentum.
We see the GBP/USD at 1.34 by year’s end.