Jonas Goltermann, an economist at Capital Economics, explains why he’s not positive about the pound: "We doubt the BoE will deliver all the tightening now discounted in markets – and if it does, that would increase the likelihood of a deeper recession in the UK, which would probably undermine sterling’s prospects. More fundamentally, the UK’s persistent inflation problem is a sign of a stagnating economy struggling to increase supply rather than of a robust growth outlook that justifies a stronger currency."
