Sterling faces a 12 year low
Friday witnessed a 12 year low fall on trade-weighted basis by Sterling. The fall in the sterling followed the continued abandon of UK currency by investors, due to continuous weak UK economic data. The dump of currency is not just linked to the weak economic data but also with the speculation on possibility of interest rate cut in upcoming months.
Sterling experienced its lowest since October of 1996, as it volumes 89.5 on trade weighted basis. With the fall sterling is staggering over its lowest next to euro, ever since inception of single currency in year 1999.
David Blanchflower, Bank of England policymaker, said that its not possible for central government to stay contended on rates, with the current recession of economy. There is a long hammering argument on necessity of cut in rates. According to GfK data, confidence of UK consumer is far better than what was predicted in month of August.