Sterling has fallen below the mark of $1.30 on the morning on Monday after The Bank of England’s member GertjanVlieghe of the Monetary Policy Committee has hinted that he may vote for the cut in the rate of interests if the data coming up doesn’t show a rebound of economy of the United Kingdom.
Earlier in the trading sessions in Europe, the currency of pound has seen a fall by 0.7% against both euro and dollar. Vlieghe has told the reporters that the coming few meetings of central bank had been absolutely live which echoed the recent comments from Mark Carney, the governor of BOE.
A host of the data on this Monday had further reinforced the concerns of the bank with the figures of GDP showing that the economy of Britain had grown at the annual pace which was weakest in the month of November for more than seven years.
GDP in the month of November had been up by only 0.6% in comparison to the year 2018 in the same month while the output of manufacturing and the production of the industries had fallen on an annual basis.
The central bank of United Kingdom has not seen a cut in the rates of interest since the year 2016, being only among one of the handful of the central banks in the world which has held the rates steady in the year 2019.
The bank’s forecast in November for the recovery in the demand had been based on the assumption that United Kingdom is going to agree an agreement of free trade with the EU in the year 2020 following the departure on the 31st January and it is going to end the uncertainty over the Brexit.