Down and out (TT Mar09 p40-42)

The erratic course of sterling has shown little sign of stabilising in the opening weeks of the new year, even if its most recent progress has been more encouraging. The decision by the Bank of England’s monetary policy committee early in February to cut interest rates to an all-time low of 1% had little impact on the market. After almost reaching parity at the end of 2008, the pound has since recovered some ground against the euro.