British pound could fall to as low as S$1.65 amid inflation, recession concerns, say analysts

INFLATION and the possibility of a recession in the United Kingdom are expected to weigh on the British pound, market watchers said, potentially pushing it as low as S$1.65 this year.

The pound fell sharply after the Bank of England (BOE) on Thursday (May 5) hiked interest rates by 25 basis points to 1 per cent, a 13-year high, and its fourth hike in a row.

The GBP/SGD rate fell from roughly 1.73 at 6 pm on Thursday to nearly 1.70 at 4.30 am on Friday. It had recovered slightly to roughly 1.71 as at 5.30 pm on Friday.