The pound had fallen 0.46% to $ 1.2127 by mid-Wednesday afternoon, its lowest level since June 16, when the Bank of England raised its key interest rate by 25 basis points to 1.25%. The pound has fallen more than 10% against the dollar this year, with its performance hampered by fears of a major economic slowdown, rising inflation and growing uncertainty about the effects of Brexit. Living Cost Latest: If you earn less than 4 41,389, your home pay is going to increase Also Wednesday, Swati Dingra, who will become the Bank of England’s policy-maker in August, said there was room for a gradual approach to raising interest rates. The bank has raised interest rates fivefold since December, mostly by a quarter of a point each time, in a bid to fight inflation. However, inflation hit a 40-year high of 9.1% in May, and some of the bank’s policymakers say interest rate hikes should have been higher. Ms Dhingra, an associate professor at the London School of Economics, will succeed one of these policy makers. Speaking before a parliamentary committee considering her appointment, she said she may have backed a half-point increase in this month’s meeting, but now she thought that would be wrong. He said: “In retrospect, I think there may be some room for a very gradual approach here. “Newer data are beginning to show that a slowdown is likely to be much more imminent than previously thought.” City Index analyst Fawad Razaqzada told Reuters: “The pound continues to sell as concerns about a sharp economic slowdown outweigh the risks of an inflation spill. “This has created expectations that the BoE will raise interest rates before it stops and possibly reverses interest rate hikes.” He said Ms. Dingra “went a step further by saying that the central bank would need to tighten its belt very gradually forward”. “The economy is starting to slow down” Meanwhile, Bank of England Governor Andrew Bailey said it was “very clear” that the economy was starting to slow down, adding that the bank would not necessarily have to act “violently” to control inflation. Follow the Daily Podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker He said at a European Central Bank event in Portugal: “There will be circumstances in which we need to do more. “We are not there yet for the next meeting. “We are still a month away, but this is on the table. “But you should not assume that it is the only thing on the table, that is the key point,” he added.
