Pound Drops to 14-Month Low as House Prices Add to Outlook Gloom
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The pound fell to the lowest in more than a year versus the dollar as the U.K.’s property slowdown deepened concern that growth has cooled, prompting investors to delay bets on when the Bank of England will raise interest rates.
Sterling slid to the least in three weeks against the euro after Monetary Policy Committee member Ben Broadbent said in a BBC radio interview that disinflationary trends in the U.K. economy “will remain in place for a while.” Investors now are betting the central bank will hold rates until at least October next year. U.K. government bonds rose as the nation sold 3 billion pounds ($4.72 billion) of 10-year gilts.