Pound dives after King labels recovery 'fragile'

clock

Sterling fell sharply today after Bank of England Governor Mervyn King labeled the UK economic recovery "fragile".

Speaking to the Treasury Committee following this month's inflation report, King said the UK faces many challenges, including reducing the country's largest peace-time deficit. After King's comments, sterling lost ground to $1.545 against the dollar, while the pound dipped to 88.28p against the euro. The Governor said bank lending to non-financial sectors continues to decline and the global imbalances which sparked the financial crisis have not been resolved. Although there are merits in additional quantitative easing to stimulate the economy, the measure also brings significant ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Spring Budget 24: Chancellor unveils long-term UK growth plan

Spring Budget 24: Chancellor unveils long-term UK growth plan

Includes British ISA launch and further NI cut

clock 06 March 2024 • 1 min read