Top economist on why investors should expect sterling to keep falling
Neil Williams, chief economist at Hermes discusses at a recent roundtable why he believes that the sterling is likely to keep falling, due to political uncertainty. Reporting on his comments, What Investment writes that this uncertainty is also likely to push inflation upwards. If the BoE is worried about inflation increasing, they can raise their interest rates and in turn this could push the value of currency upwards. However, Neil doesn’t believe that this will happen in the UK and that the BoE governor will view inflation caused by currency weakness as temporary.