Economic news

Pound dips to new 2018 lows after unexpected fall in inflation

The pound touched a fresh 2018 trough on Wednesday after UK inflation unexpectedly fell in April, triggering doubts on whether the Bank of England will increase interest rates this year.

Photo: Reuters

The British currency tumbled 0.6 percent to $1.3347, its nadir since Dec. 21.

The annual change in the consumer price index slowed to 2.4 percent, its weakest rise since March 2017.

Concerns over Brexit and a recent sluggish economic numbers mean markets are now not widely expecting a full 25-basis-point hike by the end of 2018. In May, the BoE kept interest rates steady though rate increase had at one point been widely anticipated.

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