The pound has weakened further against the euro and the dollar this morning following disappointing UK data.
Retail sales fell 1.4% in March and consumer confidence fell to levels lower than those seen during the 2008 financial crisis. Soaring prices have left many households no choice but to cut back on spending.
Speaking yesterday, Bank of England official, Catherine Mann, suggested further interest rate hikes and that the UK economy is already seeing signs of ‘stagflation’ – a combination of slow economic growth and high inflation.
“We want to avoid inflation getting out of control. And it may mean that interest rates go up a little bit. We’ll just have to see where we are in May,” she said.
Later today we will also hear from Bank of England Governor Andrew Bailey and PMI figures, which reveal how different sectors of the economy are performing, will be released.
