the value of the pound fell to a record low against the dollar overnight, following the uk government s announcement of large tax cuts funded by borrowing. in asian trading, sterling fell four per cent, close to $1.03 it s recovered much of that ground this morning. the fall in the pound since friday threatens to further fuel inflation, because it makes imports into the uk more expensive, and adds to the costs for british businesses. it also puts further pressure on the uk s finances the government s cost of borrowing has risen sharply again this morning. markets are signalling they expect the bank of england to raise interest rates further as a response to sterling s fall, with investors predicting interest rates could reach nearly six percent next year, sending the cost of borrowing for uk consumers sharply higher. earlier, sterling hit a record low and it does continue to fluctuate.
go higher, and the pound in your pocket won t go as far. the currency fell dramatically on friday and dropped sharply again this morning, touching its lowest level ever, just above $1.03, before recovering some ground. here is why. 0n above $1.03, before recovering some ground. here is why. on friday, the chancellor abandoned planned tax rises and announced a swathe of tax cuts instead. i rises and announced a swathe of tax cuts instead- cuts instead. i can announce today that we will cuts instead. i can announce today that we will cut cuts instead. i can announce today that we will cut the cuts instead. i can announce today that we will cut the basic - cuts instead. i can announce today that we will cut the basic rate - cuts instead. i can announce today that we will cut the basic rate of i that we will cut the basic rate of income tax to 19p in april 2020 three, one year early. that means a tax cut for over 31 million people injust a few tax cut for over 31 million people in j
hugh tizard as well. that s all the sport from me at the moment. you can see right up to date from all the sport news on the bbc website. i will see you again in the next hour. you very much indeed. let s return now to the fears of soaring interest rates as the bank of england could be forced to act as the value of the pound fell to a record low against the dollar overnight, following the uk government s announcement of large tax cuts funded by borrowing. in asian trading, sterling fell 4% close to $1.03 it s recovered some of that ground this morning. the fall in the pound since friday threatens to further fuel inflation, because it makes imports into the uk more expensive, and adds to the costs for british businesses. it also puts further pressure on the uk s finances the government s cost of borrowing has risen sharply again this morning.
26 past the hour. and take a look at seattle as commuters get ready to hit the roads. some of them already out there. and this morning, they re dealing with the national average price of gas which is back under $4 per gallon. the first time since march. is this temporary? nbc news correspondent tom costello reports. reporter: this morning more relief at the pump and coming below a key number, gas prices dropping below $4 a gallon for the first time since march. prices skyrocketed this summer amid inflation, supply concerns and the war in ukraine. today the national average is now $3.99, down $1.03 from the peak back in june. i m grateful. but prices are still much higher than they were just a year ago. all part of continuing inflation, eating into every day
gas prices but inflation and so on. just to remind viewers, remember where we were when you look at the number we hit in mid-june of the average cost of a gallon of gas at $5.02, well below what we see now, $3.99. that $1.03 can go a long way. remind viewers of what the last year has been. yesterday alone the national cost of average according to aaa was at 4.01. we re still very far from reaching where we were a year ago, at $3.19. there is hope among economists this will continue on a downward trend and when you hear from the average american, i was speaking to one gentleman today that makes a living driving for a ride share company saying because the prices he was hit so hard at the pump a couple of months ago, he had to scale back and alternate, work every other day because there were times it was cheaper to stay home. that s what you re hearing. you re getting relief, yes, it may be only $1.03 difference