Economics

Pound Falls for Second Day as Data Confirm U.K. Growth Slowdown

  • U.K. bonds post third weekly gain, longest run since August
  • Net trade has biggest ever drag on Britain's economy
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The pound fell for a second day after a report confirmed U.K. economic growth slowed in the third quarter.

Sterling declined for a second week versus the dollar amid speculation the state of the economy means any interest-rate increases from the Bank of England will be gradual. BOE Governor Mark Carney said earlier this week that a low-rate environment will remain for some time. That also helped support U.K. government bonds, which posted a third week of gains. In the U.S., the Federal Reserve has raised market expectations for a boost to rates in December.