Outlook on Sterling: Why the Pound Will See a Rocky 2015

UK interest rates are set to remain at record lows of 0.5% into mid-2015. Chancellor George Osborne says it will be more of the same until after the UK election next year. The last few days have seen UK housing price growth slow to an 18 month low and weaker-than-forecast industrial and manufacturing data. The British Chamber of Commerce has lowered its UK growth forecast to 3.0% for 2014, down from 3.2%, and cut projections for the coming year. Despite a 2.8% increase in GDP, the government deficit is expected to be 6%, larger than forecast. BullionVault's head of research Adrian Ash says the Sterling is a sell. So is the pound punching above its weight?