IMF forecast cut softens sterling
Currencies Direct January 24th 2013 - < 1 minute read
The International Monetary Fund (IMF) has cut its forecast for
UK growth in 2013 and 2014, which has softened the pound in foreign currency exchange trading with the
dollar.
In this latest blow for chancellor George Osborne, the IMF said
the economy would expand by just one per cent this year, which is a
0.1 percentage point downgrade from the institution’s October
projection.
Next year, the organisation stated the UK would grow by 1.9 per
cent – a 0.3 percentage point cut compared to the previous
forecast.
This news comes just days ahead of the release of the country’s
official gross domestic product figures for the final quarter of
2012, which analysts anticipate will reveal the nation is slipping
back into economic shrinkage after escaping the double-dip
recession last summer.
At 08:25 GMT, the pound retreated by 0.1 per cent against the
dollar to 1.582 USD, while it was steady versus the euro at 1.190
EUR.
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Currencies Direct