The GBP to QAR exchange rate has recently shown signs of strength, currently hovering around 4.9044, which is a 60-day high and approximately 1.2% above its three-month average of 4.8448. Analysts note that this rise in the pound is largely influenced by the Bank of England's hawkish signals following its latest interest rate decision, which now suggests that any future rate cuts may be conducted at a slower pace. This has contributed to a more favorable perception of the GBP.
The Bank of England’s decision to maintain its policy rate at 4.75% after a cut in November, alongside revised inflation forecasts indicating an increase to 2.6%, has many economists predicting continued volatility in the GBP. The recent fiscal policy announcements, particularly a significant £26 billion tax hike aimed at addressing a fiscal shortfall, may further impact economic growth and inflation trends, which could create additional pressure on the pound.
On the other hand, the Qatari Riyal (QAR) is being supported by robust measures from the Qatar Central Bank. The introduction of the QA-RTGS system is expected to improve transaction efficiencies, while recent decisions to reduce interest rates aim to bolster economic growth. Furthermore, Qatar's international reserves have shown stability, increasing to 260 billion riyals by mid-2025, underscoring the country’s resilience against external shocks.
The QAR also remains sensitive to fluctuations in oil prices, which have been volatile, currently trading at 62.03 USD/bbl, about 2.6% lower than the three-month average of 63.67 amid swings over an 18.8% range. This interplay between oil prices and the QAR, coupled with the broader trends in inflation and economic policy in the UK, continues to shape the GBP to QAR forecast.
Overall, the currency market suggests that the GBP will face upward pressure as long as the Bank of England adopts a cautious stance on future interest rate cuts and the UK’s economic outlook holds. In contrast, the QAR may retain its stability through proactive monetary policy but could be affected by fluctuations in oil prices given Qatar’s economic reliance on the oil sector. Observers expect continued fluctuations within the relatively stable range of 4.7399 to 4.9278 for the foreseeable future.
