The pound has touched another all-time low against the euro, driven by the Bank of England cutting UK interest rates as had been widely expected. One pound was worth as little as 1.2457 euros in Thursday trading though sterling later strengthened slightly, to be worth 1.2537.
The Bank trimming rates to 5% had already been priced in, analysts said. Interest rate cuts generally encourage investors to switch to other currencies which have a higher rate of return. While the pound went below 1.2500 euros, the European single currency touched as high as 80.3 pence.
The Bank trimming rates to 5% had already been priced in, analysts said. Interest rate cuts generally encourage investors to switch to other currencies which have a higher rate of return. While the pound went below 1.2500 euros, the European single currency touched as high as 80.3 pence.
Is this good for the economy? What impact will it have on those who are contemplating booking a European holiday this summer?
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