UBS: the British pound may continue to decline

According to currency analysts UBS, the British pound may continue to decline due to the fact that the sluggish pace of recovery of the UK economy will not allow the Bank of England to begin raising interest rates soon. The bank drew attention to the growing likelihood that the Bank of England will begin the process of normalization policy later than other central banks of the Group of Ten. Thus, medium-term downside risks to the British currency increases. The bank changed the outlook for rates in the UK and now believe that the end of 2011 the central bank will lower the rate to 2.25% (last forecast bank 3%). Now the rate stands at 0.5%. As for the British pound, the bank recommends selling the currency against the U.S. dollar at $ 1.5455 to $ 1.50 and closed position in the case of growth of pound / dollar to $ 1.5610. At the moment couple pound / dollar was at $ 1.5421.