8 September 2022 | Other

Pound sterling hits record lows since mid-80s, and falling will likely continue

The British currency’s value against the dollar is still moving downwards, and has reached the levels last registered in the middle of the 1980s. Such a crush has provoked the discussions of the possible spiraling down, resulting in a possible undermining of credibility of British assets and a balance-of-payments crisis.

Experts don’t perceive the worst scenario as the most probable one, although they suggest that there’s a necessity for the pound to get cheaper for the investors to return. As said by Charles Diebel, the already cheap currency probably needs to become cheaper.

According to a forecast made by the International Monetary Fund, Great Britain is about to deal with a slower economic recovery combined with a stronger inflation in comparison with other countries’ situations during the following year.

The future rates of the pound sterling are now directly dependent on the international economic situation, and the results of Truss’s attempts to control the depth and length of recession will also have their impact.

The growing expansionism of fiscal policy additionally implies tightening of monetary policy as well. The interest rates are largely expected to be risen by the Bank of England, and there’s a belief among the investors that the rates will reach the record level of 4.3% by the beginning of next summer. Still, the pound sterling continues its decline.

Company MarketCheese
Period: 22.11.2026 Expectation: 145 pips
Invest in S&P 500 with 7,845 in mind
Today at 09:49 AM 9
Period: 22.11.2026 Expectation: 2400 pips
Sell Bitcoin down to $80,500
Today at 08:24 AM 9
Period: 04.11.2026 Expectation: 2700 pips
Go long on NVIDIA stock with $243 in view
Yesterday at 10:10 AM 22
Period: 04.11.2026 Expectation: 1300 pips
EURUSD sell-off targets 1.0000
Yesterday at 09:28 AM 27
Period: 01.11.2026 Expectation: 6300 pips
Buy Tesla stock with $430 in sight
20 October 2026 31
Period: 20.11.2026 Expectation: 1200 pips
Invest in AUDUSD ahead of Fed and RBA meetings
20 October 2026 28
Go to forecasts