THE TELEGRAPH: The pound has slipped to a new record low against the euro and a 9½-month low against the dollar as markets bet that the Bank of England will cut interest rates today.
Markets are pricing in a 62pc probability that the Bank's Monetary Policy Committee votes to reduce official borrowing costs at noon, traders said. It came amid fresh fears for the UK economy, following the slide in Wall Street overnight and the disappointing trading statement released by Marks & Spencer.
Today's rate decision is regarded as one of the closest calls in recent months, with the City's experts and the markets divided over the course of action the Bank will take. According to a survey from Reuters, 51 of 63 economists expect the MPC to leave borrowing costs unchanged at 5.5pc.
The news pushed the pound lower still, as traders bet that Britain's official rates will drop further in the coming year, making sterling-denominated investments less attractive. Interest rate cut hopes hammer sterling >>> By Edmund Conway
Mark Alexander (Paperback)
Mark Alexander (Hardback)
