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U.k. rates fell to their lowest level in two weeks on Thursday as the British government lowered rates in a bid to boost exports.
The move was welcomed by a range of investors, who expect the pound to rise to about $1 per U:1 and the euro to fall to $2.17.
The rate cut is the latest effort by the British and European Union to ease tensions over the Brexit issue, but it came as inflation hit a record high of 5.3 percent last month.
“We are still in the middle of a recession.
That is not a bad sign, especially if you look at the outlook,” said Daniel Gerson, chief economist at London-based Capital Economics.
“The U. K. economy is in deep trouble.
We have to get our finances right.”
The British pound slipped as much as 1.4 percent to $0.8245 from $0
