Risks starting to build up for sterling as growth continues to slow

Growth in the UK economy slowed last year, with GDP increasing by an estimated 2.2%, down from 2.9% in 2014. Meanwhile, inflation was much weaker than expected. The CPI rate in the UK has been stuck at between -0.1% and +0.1% since last February.

Largely as a result of these developments, the rate hikes expected in the UK last year never materialised.

Indeed, the Bank of England’s most recent commentaries suggest that it may keep UK rates on hold for the whole of this year also.