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The BoE indicated that growth could be as low as one per cent for the year, halving its previous prediction.
Bloomberg reports the pound falling 0.3 per cent to $1.5771, and 0.4 per cent to 121.38 yen, as widespread gloom about British unemployment was underlined by the BoE's statement. Gilts fell to a record 2.11 percent before rising to 2.16, leaving them little-changed.
Chris Walker, a currency strategist at UBS in London, told the news provider he found it hard to disagree with the central bank's predictions. "The Bank of England's forecast is realistic in our view. They didn't predict a recession, but if the euro region's situation deteriorates further, that’s a scenario the market can't rule out," he said.
Sterling also made losses against the dollar yesterday (November 15th) as fears about the UK economy continued to trouble global traders.
Posted by Greg Secker
