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 low of almost $1.03, since it has regained much of the fallout but continues to fluctuate. sirjohn gieve is a former deputy governor of the bank of england
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.
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.