LONDON (AFP) — The pound slipped against he euro Thursday, reaching an eight-day low of 1.2566 at one point.
The Bank of England left its benchmark interest rate steady at 5.00 percent as rate-setters remain concerned about soaring inflationary pressures.
At the same time there is growing evidence that the credit crunch is causing the economy to slow sharply, driven by a marked deterioration in the housing market.
Figures out earlier from HBOS unit Halifax's housing market survey showed a massive 2.4 percent monthly fall in house prices during May, far worse than forecasts for a much smaller 1.0 percent fall.
"Sterling is not looking good. It is fighting with the dollar as one of the two main contenders in the 'ugly' competition," Mellor said.
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