Sterling’s descent spells bad news for Irish firms

STERLING’S sharp deterioration in the past week threatens the earnings outlook of many Irish companies that depend on Britain for substantial amounts of their profits.

Forecasters are suggesting the pound could stay low for some time as the deteriorating economic outlook raises the prospects of rate cuts from the Bank of England over the next 12 months.

Unguarded comments over the weekend by Alistair Darling, the British chancellor, who said Britain was facing its worst economic crisis in 60 years saw sterling hit an all time low against the euro yesterday.