# British Pound: Stabilisation expected with higher gilts – BNP Paribas

> BNP Paribas expects UK growth to slow to 0.7% in 2026 with inflation reaching 3.6% amid the Iran conflict. It forecasts 50 basis points of BoE tightening in 2026 and GBP/USD stabilising around 1.35 by Q4 2026. Gilt yields are expected to remain elevated before easing in 2027.

- Date: 2026-05-26 · published 2026-05-26T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/19523-british-pound-stabilisation-expected-with-higher-gilts-bnp-paribas
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

The forecast reflects energy-driven inflation and tighter UK policy, which affect sterling and UK financing conditions. It does not directly change global feed supply or demand.

## Sources

- fxstreet.com: https://www.fxstreet.com/news/british-pound-stabilisation-expected-with-higher-gilts-bnp-paribas-202605261317

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.