Looking ahead, many expect the Bank of England to enact more accommodative measures to help bolster the economy. In August, the Bank of England pared its benchmark rates to a record low 0.25% from 0.5% and anticipates it will further bring it down toward zero ahead, the Wall Street Journal reports.
The pound has been the worst performing asset since the U.K.’s decision to leave the E.U., and the majority of analysts who’ve changed their forecasts since the referendum results are now projecting the currency to remain depressed.
“The pound has fallen 1.6 percent against the U.S. currency this year, more than any of its G-10 peers, and adding to a 16 percent drop in 2016. While, before the referendum, sterling was seen as one of the market’s best ways to trade the risk of a ‘leave’ vote, since then it has swung wildly amid debates over the manner of the U.K.’s exit,” according to Bloomberg.
For more information on the GBP, visit our British pound category.