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Pound’s Most Vulnerable Moment Is Two Months Away, Citi Says

Bloomberg Markets
Wednesday, February 11, 2026 at 12:09 PM
~4 min read

Original Report

Citigroup Inc. thinks it’s too early to sell the pound now, instead targeting a weaker currency in the second quarter when it sees a ramp up in political risks coinciding with interest-rate cuts for...

Citigroup Inc. thinks it’s too early to sell the pound now, instead targeting a weaker currency in the second quarter when it sees a ramp up in political risks coinciding with interest-rate cuts for a “double whammy” blow.

Glass House Analysis

Central bank policy decisions made in boardrooms cascade through the economy in ways that touch everyone. A quarter-point rate change might seem abstract, but it determines whether young families can afford homes, whether businesses can afford to hire, and whether retirees see meaningful returns on their savings. The tension between fighting inflation and maintaining employment represents a fundamental tradeoff in economic policy—one that invariably creates winners and losers.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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