The GBP to CNY exchange rate is currently range-bound.
Key drivers include interest rate differentials, with the Bank of England expected to cut rates to 3.25% by mid-2026, while the People’s Bank of China remains steady, likely prioritizing stability. Additionally, UK economic growth is anticipated to slow to 1.2%, impacting the pound, while China targets around 5% growth amidst ongoing stimulus measures.
The GBP to CNY exchange rate is expected to remain stable within its recent range. Prices have fluctuated only 3.2% from 9.2757 to 9.5723 in the last three months, suggesting a consistent trading range in the near term.
An upside risk could arise if UK inflation drops more sharply, leading to a stronger pound. Conversely, a downside risk exists if the Chinese yuan strengthens unexpectedly against other major currencies, impacting the GBP/CNY dynamics.