Sunday Times economics editor David Smith says the plunge of the pound, particularly against the euro, the UK’s largest trading partner, could limit further agressive cuts from the BOE. Having cut 150 bp and 100 bp in the last two months, a slower pace is likely, buts with the Bank concerned disinflation could turn to deflation, a weak pound could provide a lifeline for UK manufacturers.
Car makers are set to receive government aid from the UK, potentially from the British version of the TARP, according to the Times.
