GBPAUD

British pound / Australian dollar

Business confidence in the UK grew at the fastest rate in 20 months. Lloyds Bank Plc's said its UK sentiment index rose from 10% in November to 17% in December.

Due to increasing interest rates and deepening recession, the British property market is experiencing more and more stress. This sphere, which used to be prosperous during the pandemic, might face price decrease by 10% over the next year.

The slump in Australia's real estate market, recorded after the COVID-19 pandemic, is likely to worsen next year. This is due to the need to cover mortgages taken in 2020-21, when interest rates reached their all-time lows.

The Reserve Bank of Australia (RBA) was considering pausing its tightening policy cycle this month.

A slowdown in sales was recently noted by Australian retailers. This is linked to a rapid growth of interest rate in the country, which has been having a negative impact on consumers’ buying power in the run-up to Christmas.