Monday, October 27, 2008

Sterling Falls

The Pound continued to fall this morning, below $1.55 in early trade, as traders take account of Britain's parlous financial state.

However, those who believe that a country's machismo can best be displayed by a strong currency are seriously misguided. A falling pound, under the current circumstances, will be of great benefit to Britain's exporters.

That said, the Bank of England has a duty to cut interest rates swiftly and aggressively in order to lessen the effects of the recession.

The longer the Bank dithers, the worse it will become.

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