Bank of England policymaker: Sterling could fall further

A Bank of England policymaker has said he would not be surprised if the pound fell further, but that the Bank of England could overlook the effect of weak sterling on inflation, possibly for years.

Sterling slid below $1.23 on Tuesday, in line with forecasts from some major banks, but last week’s shock 10-minute plunge to a 31-year low has some wondering if a drop closer to parity is possible.

It weakened 0.3% to 90.35 against the euro, having depreciated to a seven-year low on Friday.