OCBC Strategists: Further Sterling Gains Need Economic Data and Rate Hikes

According to Jin10, OCBC strategists Sim Moh Siong and Christopher Wong said fiscal discipline, resilient UK economic growth and improved political stability have supported sterling, while the latest budget preserved room for policies consistent with fiscal rules. Markets have already priced in expectations for aggressive Bank of England tightening through 2027, they said, so further gains in sterling require support from economic data and the actual implementation of rate hikes, with the bar for further advances continuing to rise.