Alberto Gallo, the CIO of London-based hedge fund Andromeda Capital Management, is expecting a further fall in the value of sterling despite the Bank of England raising interest rates by 75 basis points – its highest increase in over three decades – to 3%, according to a report by Financial News.

Alberto Gallo, the CIO of London-based hedge fund Andromeda Capital Management, is expecting a further fall in the value of sterling despite the Bank of England (BoE) raising interest rates by 75 basis points – its highest increase in over three decades – to 3%, according to a report by Financial News.

Gallo's forecast comes amid rising inflation and a gloomy economic forecast with UK inflation topping 10.1% in September and the BoE now expecting that figure to reach 11% by the end of the year.

Gallo's view is that the BoE's rate hikes are a case of "too little, too late".

In an interview with Financial News, Gala said: “By ignoring inflation, the Bank is gradually losing its already damaged credibility.” 

And he believes that the pound, which has lost more than 17% of its value against the dollar so far this year, making it a profitable short bets for hedge funds, will provide traders with further opportunities as it continues its "slide towards parity against the US dollar".