UniCredit Sees 10% Pound Drop in Contrarian Bet on More BOE Cuts

The pound will slide around 10% against the euro by the end of next year as the Bank of England is likely to cut interest rates faster than markets are expecting, according to UniCredit SpA.

The Italian bank’s investment institute is forecasting a fall in the pound to 0.95 per euro by end-2026, from around 0.86 at the moment. It’s by far the most bearish call for sterling among analysts surveyed by Bloomberg, where the median forecast is for the UK currency to stay around current levels.