MUFG: Pound could underperform if BoE cuts rates faster than expected
ChainCatcher reported that Derek Halpenny of MUFG stated that the prospect of the Bank of England cutting interest rates more than expected would be a blow to the pound. Market expectations for rate cuts this year appear "too cautious", and the pound may underperform non-dollar currencies later this year. The pound was the worst-performing G10 currency the previous trading day, as the UK's December manufacturing PMI was unexpectedly revised down and natural gas prices surged, moderately increasing expectations for a rate cut in February.
