Pound realignment in ERM forecast

The odds are starting to shift in favour of a realignment of the Irish pound's central parity in the European Exchange Rate Mechanism (ERM), according to Bank of America economist Mr Jeremy Hawkins.

He believes sterling may not fall as sharply as many commentators expect in the early part of next year, significantly increasing the risk of a revaluation of the pound before the conversion rates to a single European currency are set next May.