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Sterling falls vs recovering dollar Reuters Sterling fell versus a broadly recovering dollar on Wednesday as investors continued to look for clues on when widely anticipated interest rate cuts will be made. The Bank of England has to weigh up the impact of rising inflationary pressures against the likely economic slowdown caused by turmoil in the financial markets, Monetary Policy Committee member Andrew Sentance said on Tuesday. Some analysts are predicting a cut in rates from the current 5.75 percent as early as next week. "There's a general feeling of malaise in the economy starting to set in with City bonuses likely to be down," said Geoff Kendrick, currency strategist at Westpac. "The Bank of England will try to address this by cutting rates and they tend to do this early when they can, so we expect them to cut rates in December."
At 0822 GMT the pound was down 0.4 percent at $2.0607 <GBP=>. A generally weaker euro was down 0.2 percent at 71.56 pence <EURGBP=>. Investors will look on Thursday to Nationwide house price figures for November, mortgage approvals data for October and the Confederation of British Industry's distributive trade data for November for further guidance on the economy and the outlook for interest rates. (Reporting by Simon Falush; Editing by Ruth Pitchford)
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