After falling yesterday following the Prime Minister’s ‘Plan B’ announcement, the pound is stronger against the euro but is still struggling against the dollar.
GDP figures released earlier this morning show that the UK economy grew by just 0.1% in October, with output at restaurants and hotels falling by 5.5%. This has caused some concern as the impacts of the new Omicron variant have not yet been factored in. Despite this, Chancellor of the Exchequer, Rishi Sunak, acknowledged the reading as a “bump in the road” but insisted “we are well placed to keep our economy on track”.
Markets will now be looking to next week’s Bank of England interest rate decision. While expectations of a rate hike have decreased, any surprises could impact sterling.
