The pound is continuing its losing streak.
On Friday, the pound was set for a record 10th straight week of losses against the euro. That is an interest rate cut that appears more likely.
The potential for the Bank of England to raise rates was one of few hopes for the support of the pound in recent weeks. But those hopes have seemingly been dashed.
Senior Bank of England official Gertjan Vlieghe said the Central Bank may need to cut rates to almost zero in the event of a no-deal Brexit. However, he says if the UK leaves with the deal, the BoE could increase rates to one percent in one year. Vlieghe said “it’s more possible” for the BoE to cut rates rather than raise rates.
Boris Johnson, the favorite to be the UK’s next prime minister, says the country will depart on Oct. 31 with or without a deal.
Concerns over slow growth have also hit the pound. On Friday, it was flat against the euro at 89.81 pence. Against the dollar, it edged to $1.25.
But some analysts are more optimistic towards the British currency and foresee a turnaround; they say the declines are overdone and the pound is due for a rebound.