Pound under pressure as King slashes growth forecast

Sterling was weaker against other major currencies after the Bank of England cut its growth forecast for this year.

The Bank revised its growth forecast for 2011 from 1.8% to around 1.5%, causing the currency to slide against the euro. Shortly after the publication of the Bank's quarterly inflation report Sterling was down 0.38% against the dollar to 1.627, and 0.33% against the euro to €1.131 Speaking about the report, the Bank's governor Mervyn King warned problems in the Eurozone could have a "significant impact" on the UK economy, adding the slowing global economy had already affected growth. He expected some of the impact from overseas could continue to hold back growth for some time, warni...