Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

British Pound to Weaken to 89 Pence Per Euro, Danske Bank Says

The U.K. pound will weaken to 89 pence per euro in the next three months as the European Central Bank starts raising borrowing costs four months before the Bank of England, Danske Bank A/S predicts.

Danske Bank pared back its forecast from a previous estimate of 86 pence as it expects the ECB to raise its refinancing rate to 1.25 percent in April from 1 percent.

“Markets are pricing almost a 100 percent probability that the ECB will raise rates in April; I am less confident that the Bank of England will raise rates” because the U.K. economy is too fragile, John Hydeskov, chief analyst at Danske Bank in London said by phone.

Hydeskov forecasts the U.K.’s central bank will keep its benchmark interest rate at a record low of 0.5 percent until August. “In my view a May rate hike is simply not realistic,” he said.

The pound was 0.4 percent stronger at 86.72 pence per euro as of 12:55 p.m. in London after depreciating to 87.10 pence, the weakest since Nov. 5.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.