As recently as mid- to late 2014 expectations were in place that BOE would be one of the first developed markets central banks to boost interest rates, but inflation in the U.K. remained stubbornly low. On valuation, U.K. stocks are pricier than some major Eurozone markets, but attractively valued relative to other large developed markets, including the U.S.

“ING, Goldman Sachs Group Inc. and Rabobank International this week pushed back forecasts for a BOE rate increase into the fourth quarter of this year. Futures traders are even more pessimistic, with forward contracts based on the sterling overnight index average, or Sonia, not fully pricing in a quarter-point rate increase until after February 2017. The central bank will announce its latest decision on Jan. 14,” reports Bloomberg.

CurrencyShares British Pound Sterling Trust