GBPNZD 12th SEPTEMBER 2022
The threat of recession, the energy crisis and inflation in the G7 countries have made the value of the pound continue to sink since last year. Britain has borrowed a lot of money during the pandemic. It is likely that investors will return to give more money to the UK if the country stagflates.
Stagflation is a condition in which the economy shrinks as prices continue to soar. Stagflation encourages traders to continue to leave the pound, complicating an import-dependent economy and further driving up inflation. The Bank of England may also raise interest rates more aggressively which will ultimately hurt the country's economy.
Stagflation is a condition in which the economy shrinks as prices continue to soar. Stagflation encourages traders to continue to leave the pound, complicating an import-dependent economy and further driving up inflation. The Bank of England may also raise interest rates more aggressively which will ultimately hurt the country's economy.
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