Fears of UK recession hit Pound

Sterling has fallen over the last 2 days, after new Bank of England MPC member Martin Weale commented that the UK is at risk of falling back into recession.

Mr Weale said the UK “faced a significant risk of falling back into recession and that growth forecast could be too optimistic”, as well as hinting that more Quantitative Easing, both of which have given markets the jitters in the absence of any other economic news out in the last 2 days.

We have the revision to the second quarter GDP tomorrow morning, which could add weight to Mr Weale’s comments (and put significant pressure on sterling) if revised down.