Weaker pound could revive economy

THE British pound, which fell to a four-year low against the euro, may extend declines after the Bank of England said it discussed cutting interest rates this month and said a weaker pound helps the economy.

This has the net effect of making Irish exports to Britain dearer but should help Irish inflation levels if suppliers and retailers pass on savings on imports to customers.

The pound was trading at 69.46 pence per euro at 11:25am in London from 69.50 yesterday. It earlier fell to 69.78, the lowest since February 12, 1999. Against the dollar, it dropped to $1.5739 from $1.5768 yesterday.