Pound tumbles after central bank comments

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The British pound hit its lowest level in more than 30 years against the US dollar today after comments from Bank of England governor Mark Carney and a market perception that the UK economy is headed for a downfall in the coming months.

At 7.59pm (GMT) the British pound was trading at US$1.3031 down sharply from US$1.3282 in yesterday’s trading.

Speaking to reporters in central London Governor Carney said that the English Central Bank would do whatever it takes to boost the UK economy and help it fend off any negative effects of the country’s decision to leave the European Union.

"The bank can be expected to take whatever action is needed to promote monetary and financial stability, and as a consequence, support the real economy," Carney noted.

Also pressuring the pound was a growing number of analysts including Markit chief economist Chris Williamson who believes the UK economy was head for an extended period of uncertainty which will could lead to further falls,

"A further slowing, and possible contraction, looks highly likely in coming months as a result of the uncertainty created by the EU referendum” Mr Williamson said.

He also noted that further easing measures may be on the cards including an interest rate cut to help the central banks cause,

“With the June PMIs having already fallen into territory that would normally be associated with the Bank of England cutting interest rates, it's unlikely that policymakers will feel the need to wait for more data before unleashing additional monetary stimulus” he said.


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