GBP Drops Further
The pound fell further against the Euro and the USD today with the expectation of an interest rate cut by the BoE.
A week of dismal figures, including poor results for the retail sector, increases in wholesale energy costs and worse than expected factory output for the UK has led many experts to feel an interest rate cut is imminent.
BoE Interest Rate
The BoE will cut the present interest rate of 5.5% to 5.25%, followed by a further rate cut to 4.75% later in 2008 according to a survey of analysts. [Bloomberg]
The fall in value of Sterling is linked with the US sub-prime mortgage problems. With investors fearing further reprisals across other markets, including the UK.
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