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The UK Economy

Marie Sheldon and Garry Young

National Institute Economic Review, 1997, vol. 159, 6-27

Abstract: Since our last forecast, the level of sterling and its future prospects have changed dramatically, with the effective rate rising by around 10 per cent. Early signs of a shift in sentiment towards sterling could be seen in the Autumn, with the rate against the D-Mark rising from 2.31 at the end of August to 2.46 at the end of October with smaller increases against the other currencies. At that time it was not clear whether the rise would be sustained. Now, towards the end of January, sterling stands at 2.70 against the D-Mark and 1.66 against the dollar, respectively 17 per cent and 6½ per cent higher than at the end of August.

Date: 1997
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