Qualified advisers answering your
Financial Questions
call 0800 092 1245

Bank Of England plays down recovery hopes

Mervyn King would appear to have single-handedly caused a significant sell-off in the currency markets this morning with sterling now at a five-month low. Despite the fact that yesterday's Bank of England report gave both positive and negative angles on the UK recovery, today's comments by Mervyn King are certainly as clear as day. So what exactly did the Gov of the Bank of England say to the markets?

In simple terms, Mervyn King has suggested a weaker pound would both help to focus minds upon the unfinished recovery in the UK economy and also attract significant overseas investment. Many people, such as Mervyn King, believe that the UK base for recovery is still fairly fragile and consolidation at lower levels would assist in offering great support in the medium to longer term. However, these particular comments will not be appreciated by the UK government which has been trying to talk up the UK economy for some time.

With UK interest rates unlikely to rise in the short to medium term there will be little support for sterling from that particular angle although in all honesty stock markets and currency markets appear resigned to the fact that base rates are set to remain unchanged for the foreseeable future.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details