The interest rate decision is not determined solely by economic developments. This makes it even more difficult to answer these questions. The Central Bank is also keeping an eye on the Brexit discussions. Britain's economy and the pound may encounter a new twist. These negotiations might run aground, or the country might leave the EU with no effective agreements in place. The British pound has stabilised around the €1,14 level in recent months. This was after a spike of more than €1,40 in November 2015. For now, it seems more likely that the currency will take another step back rather than recover.
"It is now 50/50 for the Pound"
The interest rate decision is not determined solely by economic developments. This makes it even more difficult to answer these questions. The Central Bank is also keeping an eye on the Brexit discussions. Britain's economy and the pound may encounter a new twist. These negotiations might run aground, or the country might leave the EU with no effective agreements in place. The British pound has stabilised around the €1,14 level in recent months. This was after a spike of more than €1,40 in November 2015. For now, it seems more likely that the currency will take another step back rather than recover.