British pound continues to fall against the dollar.
British pound has continued to fall against the dollar, raising fears that the country could slide into a triple-dip recession.
Sterling once again slid against dollar to $1.4868 on Monday, its lowest level since the early days of the coalition in 2010, and during the 2008-2009 recession.
Earlier in February, the currency plunged to a two-year low against dollar to $1.5073, after credit ratings agency Moody’s downgraded the British government’s bond rating from the top AAA to AA1 due to the country’s rising debt and slowing growth.
“The overriding concern is that the government is giving little indication that it will take its foot off austerity which is hurting economic growth,” said Market analyst Nawaz Ali from Western Union.
Earlier last week, British Business Secretary Vince Cable urged Chancellor George Osborne to change his economic course by borrowing more in order to stimulate growth in the economy.
Cable also announced that the Chancellor’s deep cuts to capital spending have had adverse “economic consequences”.
Osborne and British Prime Minister David Cameron, however, have so far rejected calls for a change in fiscal policy, saying that increasing government expenditure or cutting taxes would not help Britain’s struggling economy.
MOS/SSM/HE
