The British Pound Sterling shed one per cent against the euro on Friday, February 3, after Thursday’s Bank of England inflation report.
The sterling dipped from a rate of 1.175 to 1.160 yesterday afternoon following the publication of the Bank of England’s February Inflation Report.
The report indicated a hike in inflation rates and predicted the savings rates to continue to fall from the already low levels.
And figures released from the services PMI (Purchasing Managers Index) today saw the pound slide further to a rate of 1.158.
The PMI measures economic health in the UK’s manufacturing sector. Pound to euro exchange rate: Sterling slumps against EUR over slow economic growth
Figures released today showed the growth level had slid from 56.2 in December to 54.5 last month.This was significantly lower than the expected rate of 55.8.
According to Pound Sterling Live, it was also linked to new business pipelines, new product launches, low interest rates, diversification into new markets, marketing campaigns, a recovery in oil prices and greater political stability.
Pound to euro exchange rate: Sterling is likely to remain at a rate between 1.15 to 1.18. The euro was not the only currency the sterling took a tumble against after the Bank of England published its inflation report – the GBP has slumped against the US dollar.
