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You have the following information: Spot Inflation Nominal Interest Rate GBP 1 2.48% 1.04% CNY 8.8878 1.51% 2.15% Using the Relative Purchasing Power Parity, Calculate

You have the following information:

	Spot	Inflation	Nominal Interest Rate
GBP	1	2.48%	1.04%
CNY	8.8878	1.51%	2.15%

Using the Relative Purchasing Power Parity, Calculate the expected exchange rate in a years time. Justify your answer.

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