Euro reaches record high against sterling as Bank of England cuts rates

THE euro reached an historic high against sterling yesterday, a carryover effect of the Bank of England last week cutting its interest rates by 1.5% to 3% and the strong possibility that more rate cuts could be imminent.

One British pound was worth around €1.22 yesterday.

Later this week, the Bank of England is due to publish its latest Inflation Report, which is expected to give hints of what kind of scale of future rate cuts might be on the way and over what sort of timeframe. Last week’s Bank of England rate cute was twice the level announced by the European Central Bank (ECB) on the same day.