At Equals Money, we aim to help our clients grow, which is why we're passionate about empowering businesses to tackle everything from the small everyday hurdles like managing business spending to the larger world of foreign exchange.
Therefore, to help you start 2025 on the right note, our Head of FX Analysis, Thanim Islam, has shared some highlights on what to expect in the markets for 2025, followed by a selection of our best guides on managing business spending and cross-border finances to help your business stay ahead of the curve.
2024 proved to be a stellar year for the pound, with stable economic growth and markets repricing previous excessive dovish rate expectations by the Bank of England (BoE).
The value of the pound peaked at the end of September, when at that point it was the best performing currency amongst the G10. However, the fallout from the October 30th Budget is now threatening to bring the currency's fortunes for 2025 into doubt, with the prospect of stagflation rising. Having averaged 0.5% quarter-on-quarter growth in the first half of the year, we saw a dramatic loss of momentum in Q3, with the economy stagnating.
We even had the BoE downgrade their growth forecasts for the last quarter of 2024 from 0.3% to 0.0%, highlighting the bank's concern over the UK economy and job market. This in turn is also leading to the consensus that markets are underpricing the number of rate cuts expected by the BoE in 2025, with only two full 25bp rate cuts currently priced in.
There are growing calls that we could actually see 100bps worth of cuts in total in 2025. Overall, the view seems to be that, should stagflation risks surface, the pound will find it hard to replicate its performance in 2024.
See below for our best guides on expense management and currency volatility to help you stay ahead of the curve in 2025.
Access expert insights on demand from Equals Money. Read our Daily Currency News reports for the latest on worldwide currency movements and their impact on international payments.
Visit our Financial Glossary, a valuable resource created to break down the complex world of financial jargon and empower businesses with a deeper understanding of industry terminology.
Take the guesswork out of your business finances with our collection of easy-to-use financial calculators. From VAT to Corporation Tax to mileage, Equals Money has you covered.
Whether it’s hedging against currency volatility, setting up spend management for your various teams and departments, or any other questions you might have, get in touch with out experts and we’ll be happy to assist you and make 2025 your year of business growth.
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