Sterling hits new record low vs euro ahead of BoE rate decisionThis article was originally published in Dairy Markets
Sterling slumped to a new record low against the euro below the 80 pence mark in early trading on Thursday, ahead of the Bank of England Monetary Policy Committee's UK interest rate decision due today. The BoE is almost unanimously expected to respond to poor economic and housing data and the fallout from the global credit crunch, rather than to rising inflation pressures, with a 25 basis point cut from 5.25%. At 0730 GMT the pound was trading at €1 = £0.8014, after sinking earlier to €1 = £0.8026. Against the dollar it was flat at £1 = $1.9748. On a trade-weighted basis, sterling hit an 11½-year low at 91.90.