Ella 
Sterling faces downside risks as recession fears remain high.
Britain’s housing sector and factory activity are already under pressure due to rising borrowing costs.
Investors appeared to be divided on the pace of the Bank of England’s rate hike on Thursday.
Sterling (GBP) looked vulnerable as investors remained cautious ahead of the Bank of England (BOE) interest rate decision on Thursday. The GBP/USD pair failed to strengthen as the Bank of England rate hike is widely expected to deepen recession fears. UK fiscal advisers have warned that an aggressive rate tightening cycle will dampen the economic outlook.
The Bank of England has little choice but to raise rates further, as inflationary pressures across the UK are four times the ideal rate of 2%. Britain’s housing sector and factory activity are already under pressure due to rising borrowing costs. Businesses and households postponed credit needs to avoid taking on higher interest rates.
