The exchange rate outlook for GBP to SGD remains cautious amidst ongoing fiscal challenges in the UK. Recent analyst commentary highlights concerns regarding Chancellor Rachel Reeves’s forthcoming budget, which is expected to include tax increases and spending cuts aimed at addressing fiscal issues. This has added significant pressure to the British pound, leading to a 1.3% decline, with GBP to SGD currently at 90-day lows around 1.7093, well below its three-month average of 1.7312.
Additionally, market analysts point to the divergence in monetary policy between the Bank of England (BoE) and the U.S. Federal Reserve as a possible influence on GBP's fluctuation against major currencies. However, expectations of a potential interest rate cut by the BoE in February 2026, as suggested by policymaker Alan Taylor, complicate the GBP's recovery prospects.
Conversely, the Singapore dollar has shown resilience supported by a strong economic performance, with GDP growth of 2.9% in Q3 2025, surpassing previous expectations. The Monetary Authority of Singapore (MAS) has maintained its monetary policy settings, reflecting confidence in economic stability even amid global uncertainties. This strong economic backdrop is likely to support the SGD's performance against weaker currencies like the GBP.
In summary, analysts remain cautious about the GBP's future performance against the SGD, pointing to UK fiscal woes and a potentially easing monetary policy, while the SGD benefits from robust economic indicators and stable monetary policy, suggesting that the exchange rate may experience continued downward pressure on the GBP side.
