BNP Paribas Predicts Pound Will Reach €1.19 by March 2027
Currency analysts at BNP Paribas expect the Pound Sterling to strengthen against the Euro in the coming years, despite potential interest rate cuts from the Bank of England.
The forecast suggests that the Euro could fall to £0.84 by March 2027, which would be equivalent to the Pound buying roughly €1.19. This is based on quarter-end projections, with the 2027 figures implying a gain of around 2% from Tuesday's GBP/EUR rate.
The forecast also suggests that the UK's interest-rate advantage over the Eurozone will narrow in 2027, presenting a challenge for Sterling to hold its gains. BNP Paribas expects the Bank of England to deliver a single 'insurance' hike in November 2026, bringing the Bank Rate to 4.00%, and then resume easing in H2 2027 with two cuts taking the Bank Rate to 3.50% by end-2027.