Bank of Canada: Canadian Dollar to Pound Sterling may rebound in 2025

On December 18th, Jinshi Data reported that Royal Bank of Canada Capital Market analysts stated in a report that the Canadian dollar may rise against the British pound next year. The Canadian Central Bank started cutting interest rates earlier than other central banks, which should boost Canada’s economy. After the 2025 election, Canada’s fiscal policies may also become more favorable for business development. Although US President-elect Trump threatened to impose tariffs on Canada, the supply chains of the US and Canada are closely integrated, and any tariffs will be aimed at avoiding impact on the US economy. However, considering the position of the British pound and the possibility of a decline in the British economy, the resistance to the pound falling is small due to its overvaluation. It is expected that by the fourth quarter of 2025, the GBP/CAD will fall from the current 1.8183 to 1.73.