Analyst: UK faces stagflation, Pound may fall

eToro analyst Lale Akoner says that the British pound may face pressure as the Bank of England is dealing with the tricky situation of weak growth and high inflation or stagflation. Due to inflation still being high, the Bank of England's interest rate cuts could be "far beyond what is appropriate." She states that with the tightening of fiscal policy in the UK, the Bank of England is under pressure to boost the economy, but they should keep interest rates unchanged until core inflation eases. She also notes that as the UK's economic growth is expected to remain weak compared to the US, and the Federal Reserve remains cautious about lowering interest rates, the pound against the dollar may decline in the next three to six months.