New low for post Brexit pound

6 July 2016
new low for pound

The pound has dropped again, sinking to a new low against the US dollar, going below $1.28 as the uncertainty over the Brexit vote to leave the EU continues.

This is a new 31-year low for sterling.

What does this mean for you? Basically, a weaker pound means that your holiday is going to be more expensive, and if you buy things from the shops that are imported, they'll be more expensive too.

A lot of staples down the supermarket are imported, so this isn't good news at all.

Of course, many economists predicted that a Leave vote in the EU Referendum would be bad news for the UK's economy, and those fears are deepening now.

Investors are looking towards bonds while the pound gets dragged lower.

The Bank of England is trying to get things moving in the right direction, by easing capital rules for banks.

Governor Mark Carney said that they warnings that were issued before the vote have "begun to crystallise", with commercial property being hit, and in addition to that, the UK UK "has entered a period of uncertainty and significant market adjustment".

TOPICS:   Economy

1 comment

  • Ukwacko

    Cue the ........."But at least we got our country back"  mantra from the Brexit voting halfwits.

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