Lates News

Barclays Bank analysts stated in a report that the market's pessimism towards the UK's fiscal situation and economic outlook may be excessive and the pound is expected to rebound. They pointed out that although the UK government's fiscal leeway has disappeared, the debt levels do not appear unsustainable. Additionally, the resilience of the UK economy in recent years has exceeded previous concerns. Currently, the market generally expects the pound to fall. If the government presents a credible autumn budget in November, adhering to fiscal rules and preferably achieving this by cutting spending and expanding fiscal space, this would create "conditions" for a pound rebound. Barclays predicts that if fiscal uncertainty is eliminated, the Euro to pound exchange rate will drop from the current 0.8654 to between 0.84 and 0.85.