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GBP/USD to reach 1.26 at year-end – ANZ


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GBP/USD remained in a range of 1.19-1.24 in the first quarter of 2023. Economists at ANZ Bank expect the pair to edge higher toward 1.26 by the end of the year.

Higher interest rates are expected to be a feature of BoE meetings ahead

“While a recession may be avoided, UK inflation remains at multi-decade highs. Headline CPI in March was reported at 10.4%, with core CPI at 6.2%. Therefore, higher interest rates are expected to be a feature of BoE meetings ahead.”

“We think there is further upside and forecast GBP/USD to rise to 1.26 at end-2023.”