Sterling fell below $1.50 today after the Office for National Statistics (ONS) announced that the country’s rate of growth declined 0.5 percent to 3.0 percent in February. The pullback has – temporarily at least – eased pressure for a hike in interest rates to combat inflation.
“It’s the second month in a row that it’s undershot the consensus,” said Peter Dixon, economist for Commerzbank. “It tells us that we can be pretty confident that the Bank of England’s view that inflation will fall sharply this year is on track.”
Source: London Times