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Searing inflation in the UK pushes the Pound to a near 37-year low

The currency is trading around $1.18, less than 4 US cents away from its weakest level since 1985 against the dollar, underscoring the challenges facing the British economy

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Photo: Bloomberg

Mumbi Gitau & Naomi Tajitsu | Bloomberg
It’s starting to look like nothing can stop the British pound from sinking to new lows.

With talk about inflation surpassing 18 per cent next year and families across the country likely to be pushed into energy poverty this winter, the UK’s economic woes are getting worse by the day. The consensus among traders is that the Bank of England will have no choice but to force the economy into a severe recession and cause widespread job losses to rein in price pressures.

It’s put historic lows for the pound within reach. The currency is trading around $1.18,

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First Published: Aug 27 2022 | 2:05 PM IST

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