Related Articles
Share it
Sterling fell to a 10-month low against the US dollar following downbeat reports from the British Chamber of Commerce (BCC) and the Confederation of British Industry (CBI).
Over the weekend, the BCC revised its UK GDP growth forecast for 2011 to 2.1% from 2.3% and said it expects net public sector debt to increase over 80% of GDP. The BCC also warned that the UK economic recovery could falter if banks and consumers continue to deleverage. Separately, the CBI urged the Government to deliver a ‘convincing’ plan to balance public finances by 2016, two years sooner than planned. An opinion poll showing greater probability of a hung parliament in May also weighed on sterling today.
