Sterling fell to fresh 6-month lows against the dollar yesterday, erasing gains made in the second half of 2019. However, it recovered slightly in the wake of the Downing Street press conference.
The Chancellor of the Exchequer, Rishi Sunak, revealed more measures yesterday to boost the economy. £330 billion worth of guaranteed loans are to be made available to UK businesses in order to cope with the coronavirus crunch, and there will be a three month ‘mortgage holiday’ available to those who need it. Sunak said that he will do “whatever it takes” to support the UK through the crisis.
The new Bank of England Governor, Andrew Bailey, pledged ‘prompt action’ to the current crisis, suggesting that the Bank may introduce fresh quantitative easing, or another emergency rate cut in the near future.
