Figures boost sterling
THE pound rose towards a six-week high against the dollar yesterday after a rebound in February industrial production eased fears over a triple-dip UK recession.
Sterling climbed 0.4 per cent to $1.5319 after industrial output rose by a stronger-than-expected one per cent from January, when it fell 1.3 per cent. Official estimates showed manufacturing grew 0.8 per cent.
The risk of further, potentially aggressive monetary policy easing is still on the table in the UK
Robust retail sales in March also boosted hopes that consumer spending will help deliver GDP growth in the first three months.
The pound has lost up to six per cent of its value this year amid suggestions the faltering growth prospects will lead to the Bank of England printing more money.
Investec economist Victoria Clarke said: “For the first time in what seems like a long time, output estimates for the UK manufacturing sector delivered some reasonably positive news. The chances of the UK entering a triple-dip recession have lessened over the past couple of weeks.”
But Rabobank International senior currency strategist Jane Foley warned: “The risk of further, potentially aggressive monetary policy easing is still on the table in the UK.”