Economic news

Pound drops as Bank of England holds rates steady

Sterling slumped on Thursday to reach four-month trough versus the dollar after the Bank of England leaved rates unchanged as widely expected but downgraded its growth and inflation outlooks for 2017 and 2018.

Photo: Reuters

The British currency slipped 0.2 percent to $1.3521, near a four-month trough of $1.3485 scaled on Tuesday. It also fell versus the euro, with the common currency surging 0.3 percent to 0.877 pence.

The central bank held interest rates steady at 0.5 percent and predicted growth of 1.4 percent in 2018, down from its February's outlook of 1.8 percent.

Figures released earlier on Thursday showed industrial production edged up by 0.1 percent month-on-month in March, slightly below analysts’ predictions for 0.2 percent increase.

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