The Editor 

Sterling’s void

John Hughman

Sterling’s void

If you have ever wondered what it is like to live in an emerging market, you could be about to find out – according to analysts at Bank of America, sterling is now an emerging market currency in all but name. It said that the pound’s movements have become “neurotic at best, unfathomable at worst” and its value reflective of a “small and shrinking” economy. And a weakened currency could lead to a long-predicted surge in inflation, something many emerging markets have historically struggled to control – the Bank of England’s monetary policy committee has said it’s being “especially vigilant in monitoring trends in inflation expectations”.

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